FINANCIAL MODELING
3RD EDITION

Instructor Resources

 

 

NOTE:  I am gradually building up instructor resources for Financial Modeling.  I have
deliberately left the files in Powerpoint format so that instructors can make their own
versions of the slides.  In some cases this makes for somewhat larger downloads.

This version:  8 September 2011

Preliminary to Course
“Best practices in financial modeling”:  Powerpoint
(use this to explain modeling rules of thumb to students)

 

A course I taught in Melbourne in August 2009.  Zipped file includes
syllabus, exercises, and exam, all with solutions.  The course illustrates
the use of Financial Modeling in a framework of 18 classroom hours.

A course I taught in Tel Aviv in Summer 2011.  6 lectures on YouTube

Section1:  Corporate finance

Chapter

Chapter topic

Instructor resources

1

Basic financial calculations

 

2

Cost of capital

Chapter 2 Powerpoint

3

Financial statement modeling

Chapter 3 Powerpoint

Three additional Powerpoints

·        Overview of valuation

·        International cost of capital

·        Incorporating inflation in valuation

4

Using financial statements for valuation

Chapter 4 Powerpoint

5

Bank valuation

Chapter 5 Powerpoint

6

Leasing

Chapter 6 Powerpoint

7

Leveraged leasing

Chapter 7 Powerpoint

 

Section2:  Portfolio

Chapter

Chapter topic

Instructor resources

8

Portfolio introduction

Chapter 8 Powerpoint

9

Efficient portfolio theorems

Chapter 9 Powerpoint

10

Calculating the variance-covariance matrix

A correlation matrix function:  Excel doesn’t have a function which computes the correlation matrix.  This spreadsheet builds one.

Chapter 10 Powerpoint

Note on new correlation function

Correlation function in spreadsheet

11

Betas and SML

Chapter 11 Powerpoint

12

Portfolios without short sales

Chapter 12 Powerpoint

13

Black-Litterman

Chapter 13 Powerpoint

14

Event studies

15

VaR

 

 

Section 3:  Options

Chapter

Chapter topic

Instructor resources

16

Introduction to options

Chapter 16 Powerpoint  posted 6 March 2009

17

Binomial model

Chapter 17 Powerpoint  posted 6 March 2009

18

Lognormal distribution

Chapter 18 Powerpoint

19

Black-Scholes

Chapter 19 Powerpoint  Posted 6 March 2009

Powerpoint on Structured Products

20

Greeks

 

21

Portfolio insurance

Chapter 21 Powerpoint

22

Monte carlo methods--introduction

Chapter 22 Powerpoint Posted 6 March 2009

23

Monte Carlo methods for options

Chapter 23 Powerpoint Posted 26 August 2009 (incomplete)

 

 

Section 4:  Bonds

Chapter

Chapter topic

Instructor resources

25

Duration

 

26

Immunization

 

27

Modeling the term structure

 

28

Default-adjusted expected bond returns

Chapter 28 Powerpoint

 

Section 5:  Technical stuff

Chapter

Chapter topic

Instructor resources

29

Random numbers

Chapter 29 Powerpoint

30

Data tables

Chapter 30 Powerpoint

31

Matrices

Chapter 31 Powerpoint

32

Gauss-Seidel

 

33

Functions

 

34

Array functions (new)

Chapter 34 Powerpoint

35

Excel hints