The purpose of this highly practical PC-based workshop is to give you a good understanding and hands-on experience with tools and techniques used in financial modelling and investment analysis.
First, we give a review of the basic mathematical and statistical concepts that are widely used in the field of finance. We explain concepts such as "Time Value of Money", variance and standard deviation and other descriptive statistics. We also present and explain a variety of probability measures and statistical tools such as regression analysis and random number generation.
The remaining part of the workshop is divided into four practical "sessions".
In session one, we present and explain a number basic risk measures that are used in the risk assessment of equity and fixed income investments. The measures include sensitivity measures such as beta for stocks and modified duration and convexity for bonds, as well as statistical risk measures derived from estimated loss distributions, such as "Value-at-Risk".
In session two, we look at measures of investment performance, including "time-weighted" and "money-weighted" return and various measures of risk-adjusted and relative performance.
In session three, we explain how "total return analysis" can be used to rank alternative investments, based upon explicit assumptions about horizon yields and prices, reinvestment rates, dividend growth and other inputs.
Finally, in session four, we look at the economics of "project finance". We explain how a project is set up and organized, and we explain and present a number of methods and key ratios for evaluating the costs, benefits and risk of projects.
The individual sessions will be designed as a mix of theoretical presentations, practical examples and cases, and "hands-on" exercises. Participants are requested to bring their own laptop.
