悉尼大学金融建模课件FINC6019_Lecture_1.pptVIP

FINC6019 Financial Modelling Lecturer: Hamish Malloch What is financial modelling? Modern finance has become a very technical and sophisticated practice. This often requires the use of advanced mathematical/computational techniques. A financial model is a mathematical description of a financial situation, and involves the use of mathematics to make optimal decisions. What is financial modelling? Often the mathematics involved in a financial model cannot be solved analytically. Example: Consider a series of cash flow Ci where i = 0,1,…,6. What is the formula for the IRR? What is financial modelling? To find IRR in the preceding equation requires a solution to an order 6 polynomial. In general such a formula doesn’t exist. To solve such problems, practitioners must use computers to find approximate solutions. This course will focus on the use of computers to solve financial problems. Who uses Models? Financial models have become common in almost all areas of finance Models of corporate valuation are common among equity analysts and practitioners of mergers and acquisitions. Portfolio models are used by fund managers, hedge funds, pension funds etc. Options pricing models are used by investment banks, hedge funds, fund managers, arbitragers etc Course Over-View What topics are we going to study and what will be entailed? Though some of the topics we will cover may seem familiar, we will approach them from a more applied perspective. Not only will theory be covered, but a strong emphasis will be placed on numerical implementation. Course Over-View Implementing financial models in Excel will be done in several ways: Using Excels built in functions Writing our own functions using the VBA programming language Optimisation using the solver package Simulation using Excels random number generator Course Outline Basic financial calculations: A review of some basic financial maths NPV, IRR How to compute these with Excel NPV, IRR functions Adjustments that are useful bu