NED University of Engineering and Technology, Karachi.
Department: Department of Mathematics
Programme BS In Computational Finance
F/QSP 11/10/05
Course Profile
COURSE CODE& TITLE
MT 452 – Financial Modelling
SEMESTER
 SPRING
PREREQUISITE COURSE(S)
MT – 352 Financial Management
DATE OF APPROVAL
 FALL
CREDIT HOURS
TH 3 2 1 0
PR 3 2 1 0
BATCH
2016-2017
COURSE OBJECTIVE
1. Presents the theory and practice of financial management, emphasizing computer-
based modeling and forecasting.
2. To learn and analyse financial tools related to spreadsheet.
3. To prepare, analyze and use financial statement and applying on capital budgeting.
TEACHING TOOLS
 Problem-based learning
 Innovative solution
 Industrial visit
 Mini-project
 Group activity
 Student presentation
 Case studies
 Entrepreneurial activities
Other ___________________
COURSE PLAN
Week
No.
1
2
3
4
5
6
Topic
Reading/Article/Chapt
er No./Case Study or
Book
Contents
Teaching Tools
Introduction to
Financial
Modelling
Basic spreadsheet review
and course introduction
Lecture
Basic Financial
Calculations
IRR, NPV, Multiple IRR,
Discounted Cash Flows,
Pension Problem
Lecture,
Presentation and
Spreadsheet
Calculating
WACC
WACC, Cost of Equity, Cost
of Debt, Tax Rate, CAPM
Chapter # 3
Pro Forma
Financial
Statement
Modelling
FCF, DCF, Equity Ratios,
Alternative Modeling of
Fixed Assets
Lecture,
Presentation and
Spreadsheet
Lecture,
Presentation and
Spreadsheet
Portfolio Models Introduction
Introduction, Portfolio
Mean, Variances
Chapter # 8
Calculating
Efficient Portfolio
Efficient Portfolio’s and
CAPM, CML, SML
Lecture, Case
Study and
Spreadsheet
Lecture,
Presentation and
Spreadsheet
 Book
Recommendation
Chapter # 1
Chapter # 5
Chapter # 9
NED University of Engineering and Technology, Karachi.
Department: Department of Mathematics
Programme BS In Computational Finance
F/QSP 11/10/05
Course Profile
7
Calculating the
VarianceCovariance
Methods
Sample covariance matrix,
correlation matrix,
Alternative of sample
covariance
Lecture,
Presentation and
Spreadsheet
Chapter # 10
Lecture,
Presentation and
Spreadsheet
Chapter # 28
Value at Risk ( VaR)
Three Assets Problem,
Quantiles in Excel,
Bootstrapping
8
9
10
Introduction to
Options
11
Midterm Examination
Lecture,
Basic Options,
Presentation and
Terminologies, Option
Spreadsheet
payout and Patterns
Strategies
Chapter # 15
The Black Scholes
Model
The Black Scholes Model,
Volatility, Dividends
Adjustment portfolio
Lecture,
Presentation and
Spreadsheet
Chapter # 17
Lecture,
Presentation and
Spreadsheet
Chapter # 19
Real Options
The Abandonment Model,
Valuating the Abandonment
Option, Valuating the
Biotechnology project
Lecture,
Presentation and
Spreadsheet
Chapter # 20
Durations
Valuating Bonds, Duration
Patterns and Duration of
Bonds
14
Immunization
Strategies
Basic Simple Immunization,
Convexity
Chapter # 21
15
Project
Presentation
Based on Excel Spreadsheet
Course Review
All Topics
Lecture,
Presentation and
Spreadsheet
Presentation and
Spreadsheet
Lecture and
Feedback
12
13
16
Total No. of sessions
TEXTBOOKS (Book Name, Authors, edition, Publisher, Year)
1. Simon Benninga, Financial Modeling, Fourth Edition, 2014
All Chapters
NED University of Engineering and Technology, Karachi.
Department: Department of Mathematics
Programme BS In Computational Finance
F/QSP 11/10/05
Course Profile
COURSE LEARNING OUTCOME AND ITS MAPPING WITH PROGRAMME LEARNING OUTCOME
Sr. No.
CLOs
Programme
learning outcome
(PLO)
Taxonomy
level
Assessment Tool
At the end of the course, the student will be able to:

Quiz

Assignment

Financial Model
Project
Taught by: Muhammad Amin, Mathematics Department.
REMARKS (if any):
Prepared by:
Muhammad Amin
Reviewed &
Approved by:
Course Instructor
Date
Chairperson
Date