# BØA2042 - Financial Modeling using Excel

### Examination arrangement

Examination arrangement: Written examination

Evaluation form Weighting Duration Examination aids Grade deviation
Written examination 100/100 4 hours D

### Course content

The topics taught in this course are:
 Optimization in complete financial plans,
 Statistical analysis of stock prices and stock returns,
 Computation of risk measures,
 Portfolio construction and optimization,
 Capital market models,
 Firm valuation,
 Option pricing models and option valuation,
 Statistical analysis of time series,
 Simulation of time series.
Essential Excel capabilities to be employed are:
 Built-in and user defined Excel functions.
 Pivot Tables and Power Pivot.
 Data Tables, Goal Seek
 Excel Solver
 Data Analysis Tool Pack
 Visual Basic for Application
Intersection with other Software/Programming environments:
 Python and Matlab (on elementary level)

### Learning outcome

Knowledge:
In this course the student strengthens and extents principles in finance, statistics, risk analysis and optimization.

Skills:
In this course the student learns how to translate and implement financial data and financial models by means of Excel spreadsheets and Visual Basic for Applications. The student will be able to generate meaningful graphical representations of financial data, to statistically analyze financial data and to solve financial decision problems and market models. The student also learns how to identify properties of financial models with respect to software implementation and solvability. With respect to financial data and applications, the student will be able to use elementary and complex built-in Excel functions or add-inns like the Solver or Data Analysis Tool Pack. For problems that require repeated computations or do not fit into the two-dimensional spreadsheet representation, the student learns to use the VBA environment of Excel and Microsoft Office. The Student will be made aware of and acquire basic knowledge to use Excel within other programming environments like Matlab and Python.

General Competence:
The student learns how to apply his knowledge and skills in different practical situations. He will be encouraged to reflect about advantages, shortcomings and further reaching implications of his models and solutions.

### Learning methods and activities

Lectures and data exercises.

### Compulsory assignments

• Two mandatory assignment

### Further on evaluation

At the exam, most or all exercises need to be implemented with Microsoft Excel.

PC with Microsoft Excel will be provided and set up by NTNU.

No individual printed, hand written or electronically saved materials allowed.

No Internet connection allowed.

No network access or access to home and user directories from PC allowed

The exam follows the examination regulations of NTNU.

Supporting material allowed on exams: Approved calculator regarding NTNUs support material code B-D "specific basic calculator". Other calculators that are allowed in the course are: Casio FC-100V and Texas Instruments - BAII Plus.

Admission to study programme is required, see "special conditions".

In case of postponed examination (continuation examination), written examination may be changed to oral examination.

### Specific conditions

Exam registration requires that class registration is approved in the same semester. Compulsory activities from previous semester may be approved by the department.

Admission to a programme of study is required:

### Required previous knowledge

This course requires elementary knowledge in accounting, economics and statistics.

### Course materials

The curriculum will be announced when the course commences and supplementary literature will be provided/referred to throughout the course.

More on the course

No

Facts

Version: A
Credits:  7.5 SP
Study level: Intermediate course, level II

Coursework

Term no.: 1
Teaching semester:  SPRING 2021

Language of instruction: English

Location: Trondheim

Subject area(s)
Contact information
Course coordinator:

Phone:

# Examination

#### Examination arrangement: Written examination

Term Status code Evaluation form Weighting Examination aids Date Time Digital exam
Spring ORD Written examination 100/100 D 09:00
• * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.
Examination

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

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