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Financial modeling

Course Description: This course bridges the gap between financial theory and practical application by equipping students with the essential skills to build robust and dynamic financial models. Students will begin by learning fundamental Excel features and functions, and core financial calculations including the time value of money and basic valuation techniques. The course also explores corporate finance applications such as cash flow forecasting and the calculation of the cost of capital. Subsequently, the course moves into portfolio modeling, where students will learn to compute efficient portfolios and construct covariance matrices. Asset pricing concepts are explored through the estimation of beta and the Security Market Line. The course concludes with option pricing, covering the Black-Scholes model. By integrating theoretical finance concepts with practical computational tools, this course prepares students to streamline traditional financial analysis and conduct complex risk simulations, meeting the demands of today’s financial industry.

Credit hours: 3

Objectives of the course :

Upon completion of this course, the student will be able to:
Apply Excel equations and commands to perform financial calculations, including the time value of money.
 Building investment portfolio models, calculating efficient portfolios, and constructing variance-covariance matrices.
Estimate the beta coefficient and the Capital Market Line for analyzing asset pricing and the relationship between return and risk.
Study of corporate finance applications, such as cash flow forecasting and the calculation of the cost of capital.
Apply option pricing models, including the Black-Scholes model, using Excel techniques.

Course outputs :

Knowledge and understanding:
Distinguishes between advanced concepts in financial modeling, including the core features of Excel, time value of money financial functions, fundamental valuation, and portfolio models.
Discusses issues related to calculating efficient portfolios, constructing variance and covariance matrices, estimating beta coefficients, and applying the Capital Market Line using Excel, with a study of corporate finance applications such as cash flow forecasting and calculating the cost of capital.
 Evaluates complex financial modeling scenarios, efficient portfolio management, and option pricing using the Black-Scholes model in Excel.
2) Skills:
Processes data and information quantitatively and/or qualitatively in complex and advanced contexts related to financial modeling.
Communicates advanced financial modeling information and results verbally.

Additional information:

Last updated: 2026-04-29