Financial Modeling Benninga

[Jacque Waiden]

FinancialModeling has become the gold-standard text in its field, an essential guide for students, researchers, and practitioners that provides the computational tools needed for modeling finance fundamentals. This fifth edition has been substantially updated but maintains the straightforward, hands-on approach, with an optimal mix of explanation and implementation, that made the previous editions so popular. Using detailed Excel spreadsheets, it explains basic and advanced models in the areas of corporate finance, portfolio management, options, and bonds. This new edition offers revised material on valuation, second-order and third-order Greeks for options, value at risk (VaR), Monte Carlo methods, and implementation in R. The examples and implementation use up-to-date and relevant data.

Parts I to V cover corporate finance topics, bond and yield curve models, portfolio theory, options and derivatives, and Monte Carlo methods and their implementation in finance. Parts VI and VII treat technical topics, with part VI covering Excel and R issues and part VII (now on the book's auxiliary website) covering Excel's programming language, Visual Basic for Applications (VBA), and Python implementations. Knowledge of technical chapters on VBA and R is not necessary for understanding the material in the first five parts. The book is suitable for use in advanced finance classes that emphasize the need to combine modeling skills with a deeper knowledge of the underlying financial models.

The late Simon Benninga was Professor of Finance and Director of the Sofaer International MBA program at the Faculty of Management at Tel-Aviv University. For many years he was a Visiting Professor at the Wharton School of the University of Pennsylvania.

Tal Mofkadi is an Assistant Professor in the School of Finance in the Faculty of Management at Tel Aviv University, University of Amsterdam, and Nagoya University of Business and Commerce, and the managing partner of Numerics, an economic and financial consultancy firm.

This is actually the book I purchased. Got one version back from the current, brand new book for like $25 so you can have it for pretty cheaply. Will probably hit this harder along with BIWS after the L2 exam, but it seems very well done.

I checkouted BIWS and Wall Street Prep, they seem to be good but a bit expensive. Also the Benninga book seems to be awesome and extremely comprehensive. I am definitely buying the book not sure about the courses. Thanks for the suggestions.

I had another related question. If I just learn modeling from the book how do you represent it on your CV? Do you make reports and mention them or you just mention that you are skilled in financial modeling and leave the explaining for the interview? or some other way ?

If I take a course like BIWS, I will get a certificate to certify my knowledge and skills. But if I just learn it from a book, I really have nothing to show for it. I ask because I have learned a lot of econometrics from independent reading and taught myself R language to make various models while learning. The only thing mentioned about this in my CV is that I am profecient in R.

The new edition of Financial Modeling includes a number of innovations. A new section explains the principles of Monte Carlo methods and their application to portfolio management and exotic option valuation. A new chapter discusses term structure modeling, with special emphasis on the Nelson-Siegel model. The discussion of corporate valuation using pro forma models has been rounded out with the introduction of a new, simple model for corporate valuation based on accounting data and a minimal number of valuation parameters.

Financial Modeling is highly recommended to readers who are interested in an introduction to basic, traditional approaches to financial modeling and analysis, as well as to those who want to learn more about applying spreadsheet software to financial analysis.

Our eTextbook is browser-based and it is our goal to support the widest selection of devices available, from desktops, laptops, tablets, and smartphones. We constantly test and work to improve our eTextbook compatibility on as many devices as possible. We recommend that you upgrade your browser to the latest version and we encourage you to test and preview our eTextbook on your device before purchasing.

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Below is a break down of subject weightings in the FMVA financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.

CFI is the global institution behind the financial modeling and valuation analyst FMVA Designation. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.

Gain unlimited access to more than 250 productivity Templates, CFI's full course catalog and accredited Certification Programs, hundreds of resources, expert reviews and support, the chance to work with real-world finance and research tools, and more.

This course covers the use and valuation of fixed income securities, like sovereign and corporate bonds, and their derivatives. A fixed income security is a security for which the rule determining future cash flows is set, when the security is issued. The classical example of a fixed income security is a treasury bond, with fixed coupon payments. As long as the government can be trusted to avoid default, there is no cash-flow uncertainty for the bond. In this context, there is only one major source of uncertainty, future interest rates.

The fixed income market is the biggest financial market in the world and includes many different types of debt instruments like pure discount bonds, floating rate notes, callable and puttable bonds, and other. The probability that the issuer will default complicates the analysis with the introduction of credit risk, which creates the division between investment grade and high yield bonds. Further, the liquidity is another risk that holders of such securities need to account for.

Derivatives allow market participants to trade interest rate and credit risk directly with the use of contracts like interest rate and credit default swaps. These, enlarge the options available to investors and corporations in relation to their risk-taking and risk-management activities.

A good understanding of fixed income instruments, their derivatives and markets is very important to financial professionals and very useful to a wider audience of investors and households. In addition, due to the magnitude of the market and the complexity of the instruments there exist many career opportunities in this sector of the financial industry.

By the end of the course, the students will gain understanding of the major institutional characteristics and some key technical know-how of the design and the valuation of fixed-income instruments. To that end, in addition to understanding the economic intuition, the students will be expected to solve problems, which will go into the formal modeling issues, including interest rate and credit risk modeling.

Acquired Knowledge includes:

1. Ability to identify the determinants of risk and return of debt securities. The emphasis is on pricing of fixed-income securities, including fixed income derivatives.

2. Fixed income portfolio management techniques

3. The role of fixed-income securities in risk management.

1. The students will use and/or develop certain quantitative skills, e.g, will learn to utilize Excel and/or Matlab for solving simple but realistic problems that may arise in the fixed income market, will learn to apply binomial tree and Monte Carlo simulation approaches to asset valuation and risk assessment.

2. The students will also be able to explain interdependencies of risk factors.

1. Students should gain a unified understanding of the interdependencies of factors affecting fixed income securities

2. Students should be able to analyze problems that go beyond those explicitly covered in class/the required book

This is a course with continuous assessment (several exam components) and one final exam code. Each exam component is graded by using points on a scale from 0-100. The components will be weighted together according to the information in the course description in order to calculate the final letter grade for the examination code (course). Students who fail to participate in one/some/all exam elements will get a lower grade or may fail the course. You will find detailed information about the point system and the cut off points with reference to the letter grades when the course starts.

All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.

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