FINANCIAL MODELING 3^RD 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