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 3 Financial statement modeling Three additional Powerpoints ·        ·        · 4 Using financial statements for valuation 5 Bank valuation 6 Leasing 7 Leveraged leasing

 Section2:  Portfolio Chapter Chapter topic Instructor resources 8 Portfolio introduction 9 Efficient portfolio theorems 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. 11 Betas and SML 12 Portfolios without short sales 13 Black-Litterman 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 19 Black-Scholes Chapter 19 Powerpoint  Posted 6 March 2009 20 Greeks 21 Portfolio insurance 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

 Section 5:  Technical stuff Chapter Chapter topic Instructor resources 29 Random numbers 30 Data tables 31 Matrices 32 Gauss-Seidel 33 Functions 34 Array functions (new) 35 Excel hints