Advanced Financial Modeling

Catalog description

Students will create advanced financial models in the areas of investing and corporate finance using spreadsheet software and computer programming in multiple languages. Students will create spreadsheets and computer programs to solve complex financial problems such as estimating volatility and expected return, constructing optimal portfolios, creating and manipulating matrices, simulating multi-period portfolio values and risks, creating personal financial planning models, utilizing macros and programs to create Monte Carlo simulations, optimizing fixed income portfolios using duration and convexity, valuing forwards and options, evaluate corporate hedging strategies that utilize forwards and options, forecasting financial statements, valuing equities using discounted cash flow, estimating the cost of capital, forecasting project free cash flows and value, and valuing international projects. Students will utilize generative AI to create program code. Students will be assessed based on weekly team assignments and in-class, timed, computer-based exams. The tools used in this course will prepare students for analytical positions in corporate finance, investment management, and banking. Students are expected to have some prior experience with spreadsheet software. Students are not expected to have any programming experience.