Financial Modelling and Technologies

Unit code: BAO7003 | Study level: Postgraduate
12
(Generally, 1 credit = 10 hours of classes and independent study.)
City Campus
N/A
Overview
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Overview

This unit of study concentrate on two main areas which is more important in modern finance. First it offers students the opportunity to acquire knowledge and skills in creating computer-based financial models. These models encompass optimization, assets valuation and allocation decisions, risk factor analysis, financial time series analysis, and forecasting and simulation of stock prices. Moreover, students will gain a practical understanding of the financial theory that underlies these models, allowing them to effectively communicate their findings to the intended audience. Additionally, this course covers the latest technological advancements in the financial services industry, such as FinTech, crowdfunding, blockchain and crypto currencies, and their impact on financial services.

Learning Outcomes

On successful completion of this unit, students will be able to:

  1. Critically reflect on their financial decision-making ability by econometric techniques employing simulation and optimisation with the use of financial models;
  2. Contextualise and concisely convey the impact of change on different aspects of the financial information using computer based financial applications;
  3. Critically review the impact of contemporary and emerging technologies that are impacting the work flows and processes of financial institutions and corporate finance functions; and,
  4. Exhibit communication and presentation skills using financial data.

Assessment

For Melbourne campuses

Assessment type: Test
|
Grade: 10%
In class test (short answer theoretical question)
Assessment type: Assignment
|
Grade: 25%
Constructing and reporting optimum investment portfolio
Assessment type: Project
|
Grade: 35%
Group report on developing a market model (optimisation, time series analysis, assets pricing)
Assessment type: Case Study
|
Grade: 30%
Case studies applying financial modelling

Required reading

Selected readings will be made available via the unit VU Collaborate site.

The New DNA of Financial Services
Pranay Gupta and T. Mandy Tham, Fintech (2018)| EBSCO DRM-Free eBooks
Financial Economics and Econometrics
Nikiforos T. Laopodis (2022);| Routledge
Financial Modelling
Simon Benninga and Tal Mofkadi (2022)| MIT Press Academic

As part of a course

This unit is not compulsory for any specific course. Depending on the course you study, this unit may be taken as an elective.

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