University Subjects
BFC3540: Modelling in finance
BFC3540: Modelling in finance
- University
- Monash University
- Subject Link
- View Subject
Springyboy
4 years ago
- Assessment
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Note that this has changed from Winter Semester 2020 onwards, so please only use this as a rough guide.
- Comments
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Firstly have a look at bobbyz0r's review here as not much has changed in terms of structure since 2016 and now.
This is probably the most practical subject offered in the finance department at Clayton campus. VBA is a really nice way to piece together all of the knowledge covered in the past in finance.
Unfortunately, because of COVID the assessment structure was a bit of a mess this semester. This led to the final marks being scaled down, which is the first time I have ever encountered that in my entire degree.
However, despite that it is a really valuable subject. Even if you do not have any programming knowledge, I would still recommend taking this as an elective for a finance major as part of a commerce degree. It is a great way to wrap up a finance major, as it blends together all the knowledge covered in subjects such as corporate finance & derivatives.
That being said, the learning curve is quite steep to start off with. Make sure you look at some VBA videos before doing this subject, as the VBA coding is a bit in-depth. But once you get the hang of things, it is not the hardest subject at all. I am pretty confident that a large proportion of the cohort scored a high distinction, so if you can do this definitely take it. - Computer Labs
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- Each week there was a 2hr computer lab covering revision of concepts from the pre-recorded lectures. Please try and attend as many computer labs as possible, they'll make you think about whether your code is correct and how you can improve it. In weeks that you are not doing a tutorial exercise however, they are pretty chill, so don't stress if you get bored in them as the tutors try and go at a slower pace to some people's background knowledge to ensure that everyone understands what's going on at the same level.
Overall, the difficulty of this is equivalent to some of my level 2 finance units. This is the most relevant and practical level 3 finance unit, so do take it whilst you can. Although the assessment structure will probably be harder in semester 2, I would recommend this for anyone looking to go into a quantitative financial background, as the VBA knowledge will help you get a leg-up on the rest of your peers. - Final Assessment Task-40%
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. This was the first time a final assessment task was implemented in this unit. Paul who is also the Chief Examiner has been trying to get rid of a final exam, and that was achieved this semester. It was hoped to replace the final exam with just more in-semester work and no final assessment. But due to COVID, the final assessment task was implemented as a quick fix to an exam. This consisted of two parts. The first part was you turned up to your tutorial in week 11 & were placed in your own individual Zoom breakout room. Whilst in that breakout room, you were working on the other 30% that being a spreadsheet using VBA only. Then your tutor would pop in and visit each student in the class individually, and ask a bunch of questions related to the VBA content. If you knew what you were doing, then you would get close to full marks.
The other 30% as said above was a combined spreadsheet taking into account all parts of the unit. This was tricky to do at first, but you were given 1.5 weeks to complete it which was heaps of time if you knew what you were doing. - Financial Modeling
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by Simon Benninga is recommended, but is only useful as extra reading. Not really necessary.
- Laboratory Exercise-10%
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. In weeks 4,6,8 & 10, when you attended your tutorial you spent the first 45 minutes to an hour working on a tutorial exercise. The first half usually started in a Zoom breakout room in groups where you planned the task whilst being given a rough guide of what the task will be. The second half was the individual component where you worked on your own to try and finish the task. You could only get help from those in your Zoom breakout room, but you could not share your screen or anything to get help. These were not too bad, but the first laboratory exercise was implemented poorly, as it was done all on your own in a very tight time window. This is unlikely to be offered again, so if laboratory exercises are offered they will probably be following the structure above.
- Laboratory Participation / Attendance-10%
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. As long as you turned up to your tutorial, you were guaranteed this 10%. I had Josh as my tutor for the first half of classes, before he went to London to complete his PhD. He was replaced by Michael or Trav who is an absolute legend. Out of all the tutors in the banking & finance faculty these days, Trav has to be the most helpful, friendly and concise explainer of the content at hand. Definitely get him as a tutor, he will make your life much easier in any of the subjects he takes, particularly this, BFX3355 (Property Investment) & BFC3340 (Derivatives 2).
- Past Exams Available
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No exam from S1 2020 onwards
- Rating
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4 out of 5
- Recorded Lectures
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Yes, with screen capture
- Weekly Excel Spreadsheet Assignments-20%
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. These were relatively straightforward, as videos were provided on how to do these. They were just using basic Excel functions, so you were guaranteed to get near perfect marks for these. 5 spreadsheets were completed, and the best 4 out of 5 were taken into your marks worth 5% each.
- Weekly V B A Spreadsheet Assignment-20%
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. Again similar structure to above, but this time implemented using Visual Basic for Applications (VBA). These were much harder than the Excel spreadsheets, but were far more relevant as the final assessment was only completed using VBA. Again, the best 4 out of 5 VBA spreadsheets were taken into your overall mark
- Workload
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1 x 2hr computer lab each week
1 x 1hr pre-recorded lecture per week (Not necesary but does help to explain the theory better) - Year & Semester Of Completion
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Semester 1, 2020
bobbyz0r
8 years ago
- Assessment
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- B.
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Individual VBA Assignment (3 Parts)
Part 1: Week 8 (1%)
Part 2: Week 10 (2%)
Part 3: Week 12 (3%)6% - C.
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Weekly Quizzes
Weeks 1, 2, 3, 4, 5, 6, 9, 10, 11 4% - Comments
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Unit was formerly known as AFC3540. Have a read of TrueTears' unit review as well.
This unit has been recently changed to being a capstone unit. Now, the main thing you should know about this unit is it has a large focus on the application of theory.
I did this unit concurrently with BFC3140 (Corporate Finance 2/Adv Corp Fi), having only done BFC2140, BFC2240 and BFC2000 for my Finance Major. This seemed to be a decent amont of prior knowledge.
I would say that, going without doing options (BFC3340), the basics of options from BFC3140 was sufficient for me. In fact, I found the options easier due to the more mathematical way taught in 3540 compared to 3140.
Also, I have had a bit of experience with Excel from some Econometrics units, which helped a lot at the start of the unit.
Now, Paul will go through the theory quite quickly in the lectures, but most of it should only be revision. However, he does start from the start, almost assuming no prior knowledge.
I found that I understood some financial concepts a lot better after covering the topic in this unit.
As I said before, the main focus is on application. Particularly, it is taught on Excel. This is through both just basic Excel, relying on the inbuilt functions, as well as teach VBA coding.
If like me, you have always planned to learn some basic programming fundamentals, this is quite a good unit to start. I always had trouble learning programming purely because I didn't have a problem to solve.
Here, you'll be given problems to solve. The VBA they teach start from the very basic to a level where you should be able to program a Binomial Option Pricing Model.
I had no prior programming experience apart from simple HTML/CSS. Some people found the pace quick, some found it fine. If you are somewhat computer inclined, it should be no problem.
I would say I'm above average at using computers in general, and found the VBA they taught to be quite a decent pace, albeit a tad slow. By around Week 5, most of the coding fundamentals is covered, so you can focus on applying the skills you learn.
The tutes were quite useful. I had Mikhail as my tutor (he is the head tutor for the unit), who was excellent. There is a large emphasis on in-semester assessment in this unit, so do attend tutes to stay up to date.
Tute attendence/participation is not marked, however a lot of tests are held during tutes, indirectly making them compulsory.
On the topic of assessment, this is where this unit shines. I have never liked it when exams counted for >60% of the unit, because I personally do better in assignments (so I may be somewhat biased).
Weekly VBA and Excel Spreadsheets to submit, as well as a Weekly Moodle Quiz. For the spreadsheets, you get two chances at it. After your first submission, automated feedback is given indicating your errors and tells you the correct answers.
The following week, you can resubmit, and your average mark is taken as the final mark. The Moodle quizzes also come with a revision quiz to practice. These are past exam MCQs, and are there to keep you up to date with the content covered in lectures.
They are fairly simple, and you are given excess time to complete them (1 hour for a 10-15 minute quiz, at most).
There are tests in tute which test you VBA skills. You'll be given a problem to solve using VBA. Some are complete marked autmatically, while some are Q&A quizzes, where the tutor will ask you 1 on 1 to exaplain what you have done.
It is pretty obvious that people are cheating in this unit for some in semester assessments. I recommend not to do so, as they are: a) very useful for learning, and b) not that hard.
I would HAPPILY forgo the marks, since the stuff you learn is very useful. Despite the efforts of Paul to reduce rote learning, it is a unit you can rote learn.
For example, the code for matrix multiplication or for American Call Option Pricing.
For three weeks near the end of the semester, there is a break from all the Excel in the debates. These debates are debating a portfolio and its weights using a top-down analysis (news headlines).
I found that the debates really helped me to follow business news. You are forced to read news headlines related to three sectors and six shares. While it feels horrible at the time, it really did help me to get into following financial and business news.
Mark distribution wise, about 50% of the cohort gets at least a Distinction or higher. In semester, the average was roughly 70% I have heard. While the exam only counts for 40%, it is a hurdle.
This puts some people in a scenario where they will get a D so long as they pass the exam. And because of the emphasis on in-semester assessment, not much study is required during SWOTVAC. The exam itself is 3hr.
I suggest everyone to smash out the VBA coding section first (which accounted for 40% of the exam), before going on to the MCQs, which account for 50% of the exam!!
All in all, highly recommended unit, although students commencing studies 2016 onwards will have to do this unit as a capstone unit for the Finance major as part of the Monash Business School restructure. - D.
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Weekly Excel Spread Sheet Assignments
Weeks 1, 2, 3, 5, 6, 9, 10, 11 5% - E.
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Weekly VBA Spread Sheet Assignment
Weeks 1, 2, 3, 4, 5 5% - F.
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Mid-Semester Test
Week 9
Second Hour8% - G.
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VBA In-Tute Programming Tests
Weeks 2, 4, 6 10% - H.
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VBA In-Tute Q&A VBA Test Weeks 3, 11 8%
- I.
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In tutorial Excel Spread Sheet Mid Semester
Test Week 7
6%
(from Unit Guide)
note: This changes slightly every semester. - Lecturer(s)
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Paul Lajbcygier
- Past Exams Available
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No. There is a very old one on the Monash Library Database, but the unit has changed far too much.
Instead, the Mid Semester Test and the Weekly Moodle Quizzes are mainly past exam questions. - Rating
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5 out of 5
- Recorded Lectures
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Yes.
- Textbook Recommendation
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None really needed. Crappy scans from textbooks are uploaded, which may help (but not really needed)
- Workload
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1 x 1.5 hr lecture, 1 x 1.5 hr tutorial/computer lab
- Year & Semester Of Completion
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2016, Semester 1
- Your Mark / Grade
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Pending
- State
- VIC
- Type
- University
- Courses
- 179
- Campuses
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Caulfield Churchill City Clayton Parkville Peninsula
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