BN4003 Financial Analytics Syllabus:
BN4003 Financial Analytics Syllabus – Anna University PG Syllabus Regulation 2021
OBJECTIVE:
➢ This course introduces a core set of modern analytical tools that specifically target finance applications.
UNIT- I CORPORATE FINANCE ANALYSIS
Basic corporate financial predictive modeling- Project analysis- cash flow analysis- cost of capital using sensitivity analysis, Indifference point and Financial Break even modeling, Capital Budget model Payback, NPV, IRR, and MIRR. Bankruptcy Modeling- Beaver t test, Ohison logistic regression and Alt man Z score.
UNIT- II FINANCIAL MARKET ANALYSIS
Estimation and prediction of risk and return ( bond investment and stock investment) – adjusting for stock splits, adjusting for mergers, plotting multiple series, data importing from web portal and data cleansing. Time series-examining nature of data, EWMOA, Value at risk, ARMA, ARCH and GARCH.
UNIT- III PORTFOLIO ANALYSIS
Portfolio Analysis – capital asset pricing model, Sharpe ratio, Markowitz’s mean variance optimization model and cluster analysis for categorisation of portfolio. Option pricing models- binomial model for options, Black Scholes model and Option implied volatility.
UNIT- IV TECHNICAL ANALYSIS
Prediction using chart and fundamentals – RSI, ROC, MACD, moving average and candle charts, simulating trading strategies. Prediction of share prices using machine learning-ANN and SVM.
UNIT- V CREDIT RISK ANALYSIS
Credit Risk analysis- Data processing, Decision trees, logistic regression and evaluating credit risk model.
TOTAL: 45 PERIODS
COURSE OUTCOMES:
➢ The learners should be able to perform financial analysis for decision making using excel, Python and R.
REFERENCES:
1. Financial analytics with R by Mark J. Bennett, Dirk L. Hugen, Cambridge university press.
2. Haskell Financial Data Modeling and Predictive Analytics Paperback – Import, 25Oct 2013 by Pavel Ryzhov.
3. Financial analytics with R by Mark J. Bennett, Dirk L. Hugen, Cambridge university press., 2016.
4. Quantitative Financial Analytics: The Path To Investment Profits Paperback –Import, 11 Sep 2017 by Edward E Williams (Author), John A Dobelman.
5. Python for Finance – Paperback – Import, 30 Jun 2017 by Yuxing Yan (Author).
6. Mastering Python for Finance Paperback – Import, 29 Apr 2015 by James Ma Weiming.