FINANCIAL MODELING
INTRODUCTION AND
APPLICATION
Dr. Yuliya Plyakha Ferenc
© 2015 MSCI Inc. All rights reserved.
• You are about to get introduced to some basic
and some advanced functionalities in
Microsoft Excel, and learn how to use them
for modeling some finance phenomena
About the
course
• MS Excel is something required for many jobs,
and we will show you some tips and tricks in
Excel so you could be ready for its every day
use
• Excel is a very flexible tool, and you will find
the knowledge gained here useful for many
applications not covered in this course,
because grand idea in using MS Excel is
essentially the same. Only the problems you
are faced with are different
• Topics covered are grouped in the following
units:
About the
Course
• Introduction to Excel (some basics like: cell
addresses, named ranges, table linking, matrix
operations,…)
• Data analysis (statistical functions in Excel)
• Portfolio modeling (portfolio optimization in
Excel)
• Asset pricing and risk assessment (learn how
to price the assets using CAPM model, and
measure risk by using Value at Risk)
• Options (learn how to price the options using
binomial tree model)
• If we are left with some time, we will cover term
structure modeling of interest rates by using
Nelson Siegel model
About the
Literature
• Advanced Modeling in Finance using
Excel and VBA, Jackson and Staunton
• Our presentations will by sufficient for
most of the topics
• Any other good literature regarding
Excel
Exam
• Exam date is to be determined
• Exam will cover all the applications of
Excel for financial modeling introduced
in this course
• Idea of this course is for you to learn
how to use Excel for financial modeling,
and not to learn finance, so in Exam
you will be supplied with formulas for
models
• There is none
Homework
Communication
Let’s discuss