Units
Economic and Financial Modelling
Unit code: EFN410
Contact hours: 3 per week
Credit points: 12
Information about fees and unit costs
This unit introduces students to the modelling techniques which are frequently used in a business and financial environment. Modelling is used as an aid to decision-making, as a means of forecasting important variables and as a planning and analysis tool. Various modelling exercises are used to illustrate the use of these modelling techniques in an economic and financial context.
Availability
| Semester | Available |
|---|---|
| 2013 Semester 1 | Yes |
Sample subject outline - Semester 1 2013
Note: Subject outlines often change before the semester begins. Below is a sample outline.
Rationale
This unit prepares students to get into the real world, thanks to the application-oriented content. Students will learn to understand real life problems and find solutions to solve them: setting up the appropriate model and adapt the models seen in class to different situations. This unit is usually undertaken at the end of a Master degree because only at this stage students have the knowledge of basic financial and economics concepts necessary to solve practical problems.
Aims
The unit aim is to provide students with a practical laboratory where they can apply theoretical concepts learnt in previous financial and economics units. Students have studied portfolio theory in prior units, but will be able to build efficient portfolios based on a real dataset.
Objectives
Course Learning Goals (Postgraduate)
The QUT Business School has established the Assurance of Learning (AOL) Goals to meet contemporary industry needs and standards. Achieving these learning outcomes will assist you to meet the desired graduate outcomes set at QUT - aligned with other internationally renowned business schools. Students will develop the following capabilities relevant to a contemporary global and sustainable business environment:
Have knowledge and skills pertinent to a particular discipline (KS)
1.1 Well-researched knowledge and critical understanding applied to issues at the forefront of a specialised discipline area
1.2 Ability to select and use effectively a range of tools and technologies to locate and/or generate information appropriate to the disciplinary context
Be critical thinkers and effective problem solvers (CTA)
2.1 Apply logical, critical and creative thinking and judgement to generate appropriate solutions to problems in the disciplinary context
Be professional communicators in an intercultural context (PC)
3.1 Ability to create and present professional documents and/or reports using high levels of analysis/synthesis/evaluation for a range of contexts and audiences
3.2 Ability to orally communicate and justify ideas and information, at a professional level, for a variety of contexts and audiences, including peers and discipline specialists
Be able to work effectively in a Team Environment (TW)
4.1 Operate effectively and with flexibility to achieve common goals in collaborative settings, using a range of skills, including leadership, negotiation, reflection, proactivity and support for team members
Have a Social and Ethical Understanding (SEU)
5.1 Apply knowledge of the ethical, social and cultural dimensions relevant to business situations, including appropriate standards or codes of practice, to provide courses of action
Unit Objectives
Upon completion of this unit, you should:
1. be able to analyse economic and financial problems and identify solutions through the use of statistical functions;
2. be familiar with the procedures by which economic and financial models are constructed, applied and evaluated;
3. have an awareness of the limitations of simple analytical modelling and the ways in which this simple approach can be elaborated using advanced statistical techniques; and
4. have developed report-writing skills for communicating the results of modelling exercises.
The specific course learning goals and unit objecitves that apply to this unit are shown in the assessment section of this unit outline.
Content
Module 1: Introduction
Module 2: Portfolio Theory
Module 3: Option Pricing
Approaches to Teaching and Learning
Lectures and tutorials are designed to be an interactive forum, where students develop strong communication and reasoning skills as well as quantitative analysis skills.
In accordance with QUT policy, all units are to be subject to Criterion Referenced Assessment (CRA). The unit coordinator will provide students with further details regarding CRA during the course of the semester during class and on the unit's Blackboard site.
Assessment
Students will receive feedback in various forms throughout the semester which may include:
Assessment name:
Case Studies
Description:
Two (2) case studies will be collected during the semester. The case studies will offer the opportunity for students to demonstrate some of the applied modelling techniques that have been taught. More details will be provided during the first lecture. Each case study is worth 20% and will be done in pairs.
Length/Duration: Not applicable - students are to produce an Excel document
Formative or Summative: Summative
Relates to objectives:
Unit objectives: 1, 2, 3, 4 and AOL goals: KS (1.1), (1.2), CTA (2.1), PC (3.1)
Weight:
40%
Internal or external:
Internal
Group or individual:
Group
Due date:
Weeks 8 and 11
Assessment name:
End of Semester Examination
Description:
Open book exam. Further information will be provided throughout the semester.
Length/Duration: 2 hours
Formative or Summative: Summative
Relates to objectives:
Unit objectives: 1, 2, 3, 4 and AOL goals: KS (1.1), (1.2), CTA (2.1), PC (3.1)
Weight:
60%
Internal or external:
Internal
Group or individual:
Individual
Due date:
Central Exam Period
Academic Honesty
QUT is committed to maintaining high academic standards to protect the value of its qualifications. To assist you in assuring the academic integrity of your assessment you are encouraged to make use of the support materials and services available to help you consider and check your assessment items. Important information about the university's approach to academic integrity of assessment is on your unit Blackboard site.
A breach of academic integrity is regarded as Student Misconduct and can lead to the imposition of penalties.
Resource materials
Prescribed Text
Benninga, S. (2008) Financial Modelling (3rd edition). The MIT Press.
Other Resources
Additional references can also be found at the unit's Blackboard Site.
Risk assessment statement
There are no out-of-the-ordinary risks associated with lectures or tutorials in this unit. You should, however, familiarise yourself with evacuation procedures operating in the buildings in which you attend classes and take the time to
view the Emergency video.
Disclaimer - Offer of some units is subject to viability, and information in these Unit Outlines is subject to change prior to commencement of semester.
Last modified: 07-Feb-2013
