Investment Account 2400-EPZU2RI
The course consists of three thematic blocks. In every block students prepare and present group project.
Block A: Portfolio optimization – Markowitz model
- valuation of companies and sectors, expected changes on Stock Exchange
- analysis of historical data of stock prices: variance-covariance matrix (in time window), correlation of returns, beta
- portfolio optimization using Solver in MS Excel, finding weights in portfolio
Students are expected to present short report on investing in selected companies.
Block B: Building a business-plan
- Determine the conditions of setting the company
- Construction of the balance sheet and profit and loss account, Cash Flow
- Assessment of the quality of the project, project profitability forecast
Within this unit, students prepare a short report on the created business plan.
Block C: Firm valuation with use of discounted cash flow method
- firm assessment and its business environment
- forecasts for company and sector
- historical analysis – average price in quarters
- prospective analysis – determinants of firm’s Cash Flow
- firm valuation: finding CF, WACC estimation, residual value estimation, firm valuation, recommendation
Students are expected to present short report – recommendation on possible investment in given company.
Type of course
Course coordinators
Learning outcomes
Knowledge:
- The student knows in a detailed manner the methods and tools for describing economic and financial phenomena - optimization and simulation financial models. He knows how to obtain financial data. He knows how to use a spreadsheet in describing economic and social phenomena.
- By working with a legally protected software, using teaching materials created at WNE UW, the student knows and understands the basic concepts and principles in the field of industrial property and copyright protection and is able to use tools made available on the principles of Open Source and Creative Commons.
- The student knows how to apply the presented methods and on their basis can create simulations and forecasts for his own company or for investment on the capital market
Abilities:
- Working with data, the student is able to compare financial scenarios and selects more favorable ones, critically examines and compares accounting reports, recommends financial investments
- He can acquire data, create a financial model and use it in a real situation of forecasting the financial situation of a company or an individual. He can use the spreadsheet creatively as a tool. Conducts quantitative analysis in a spreadsheet.
- He can carry out financial or economic analysis. Is able to search for data, apply the statistical or econometric modeling. He can present in writing and orally the entire research process in form of a report.
Social abilities:
- Learning how to use the basic and advanced tools of the spreadsheet allows him to extend his knowledge.
- Based on the presented interpretations of the obtained results the student can be critical towards the presented models and correctly identifies and solves problems with using these methods in running his own business or in professional work.
- By writing joint reports and analyzes necessary to pass the course, he is able to interact and work in a group, assuming different roles in it and is able to properly define priorities for the implementation of tasks specified by himself or others
S_W01, S_W02, S_W03, S_W04, S_U01, S_U02, S_U03, S_U04, S_K01
Assessment criteria
Students' reports and presentations are evaluated according to detailed criteria given during the course. Each of the three reports gives students 30% of the sum of points (in total 90% of points). Both the report and the presentation, their completeness, compliance with expectations and timeliness are assessed. 10% of points students can get for particularly good results of their investment portfolio. Only one absence in each block is possible.
Bibliography
- Glynn J., Perrin J., Murphy M., 2003, Rachunkowość dla menedżerów, Wydawnictwo Naukowe PWN, Warszawa
- Machała R., 2004, Praktyczne zarządzanie finansami firmy, Wydawnictwo Naukowe PWN, Warszawa
- Jajuga K., Jajuga T., 2006, Inwestycje. Instrumenty finansowe, aktywa niefinanswoe, ryzyko finansowe, inżynieria finansowa, Wydawnictwo Naukowe PWN, Warszawa
- Sierpińska M., Jachna T., 2007, Metody podejowania decyzji finansowych. Analiza przykładów i przypadków, Wydawnictwo Naukowe PWN, Warszawa
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: