Master Financial Modelling with Ease - Comprehensive Study Notes for DSC2604 Course! Discover the Power of Excel in Building and Testing Financial Models, Calculating NPV, PI, IRR and Sensitivity Analysis. These Summary Notes for Semesters 1 & 2, 2023 provides key things you need to succeed in this...
master financial modelling with ease comprehensive study notes for dsc2604 course discover the power of excel in building and testing financial models
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University of South Africa (Unisa)
DSC2604 - Financial Modelling (DSC2604)
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,Table of Contents
............................................................................................................................................................ 2
INTRODUCTION .................................................................................................... 3
Systems, models and problem solving .................................................................... 3
Explain what is meant by systems thinking: ............................................................ 3
Describe the benefits of models: ............................................................................. 4
Construct a concept model of a system or problem: ............................................... 4
Describe the phases of the modelling process:....................................................... 4
Explanation of how to do spreadsheet tasks: .......................................................... 8
Formulas of key concepts ....................................................................................... 9
Capital budgeting .................................................................................................. 11
key formulas used in capital budgeting and their explanations: ............................ 11
Describing and modeling data using statistics ...................................................... 13
Ways To Incorporate Risk Into Capital Budgeting Decisions ................................ 15
Portfolio theory ...................................................................................................... 19
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, INTRODUCTION
Systems, models and problem solving
Explain what is meant by systems thinking:
• A way of thinking that considers the complex interactions between different
parts of a system and how they affect each other and the overall system.
• Views the system as a whole, rather than as a collection of individual parts.
• Involves analyzing feedback loops, cause-and-effect relationships, and system
dynamics.
• Aims to understand the behavior of a system and identify opportunities for
improvement.
2. Describe an entity or situation as a system:
• A system is made up of interconnected and interdependent components or
elements that work together to achieve a common goal or purpose.
• Can be a physical, biological, social, or technological system.
• Can be characterized by inputs, processes, outputs, feedback loops, and
boundaries.
• Can be analyzed using systems thinking to identify patterns and relationships
between different components and how they affect the overall system.
3. Name and describe the different types of models:
• Conceptual models: simplified representations of a system or problem that
illustrate its key elements and relationships.
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