Financial Business Analytics 1 to 32.docx - FINANCIAL BUSINESS ANALYTICS(FBA Course Code SLBA605 Session No Title of the Topics Discussed Page No Module

Financial Business Analytics 1 to 32.docx - FINANCIAL...

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1 FINANCIAL BUSINESS ANALYTICS (FBA) Course Code: SLBA605 Session No Title of the Topics Discussed Page No Module 1: Introduction to Financial Analytics 1 Definition, relevance of Financial Analytics 2-6 2 Recent trends in Financial Analytics 7-17 Module 2: Financial Time Series and Their Characteristics 3 Asset Returns 18-23 4 Distributional properties of Returns 24-29 5 Review of Statistical Return 30-34 6 Properties of Financial Time Series 35- 36 7 Time Series Analysis with ARIMA 37-44 8 Forecasting and Box-Jenkins ARIMA Model 45-51 Module 3: The Capital Asset Pricing Model 9 Basics of Portfolio Construction 52-55 10 Diversification and Portfolio Optimization 56-64
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Session -1- Introduction to Financial Analytics Definition, relevance of Financial Analytics Introduction There is an increasing use of analytics in many organizations these days. Today’s businesses needs timely information that helps the business people to take important decisions in business. Finance plays an important role in increasing the value of your business. Finance is finding its way as an important business function and it overlaps with analytics in many areas. Financial executives are finding out new ways in the field of finance to increase the value of their organization. What is Financial Analytics Financial analytics is a field that gives different views of a company’s financial data. It helps to gain in depth knowledge and take action against it to improve the performance of your business. Financial analytics has its effect on all parts of your business. Financial analytics plays a very important role in calculating the profit of a business. Financial analytics helps you to answer all your business questions related to your business and also lets you to forecast the future of your business. Financial analytics used in two different contexts: Analytics within the finance function Analytics related to financial markets – This is where majority of the FBA syllabus is covered. Financial analytics in the finance function has to do with analysing the 3 big financial statements (the balance sheet, income statement, and statement of cash flows) within a company. Management accountants and financial analysts also go into detail in terms of tracking the financial health of the business in a much more granular manner, flagging deviations from budget and other areas worth looking into. In the financial markets, the focus is on financial assets such as stocks, bonds and commodity prices (among many others). The work is similarly quantitative, but with a heavy dose of theoretical models (CAPM pricing, portfolio theory, factor analysis etc) and statistical models (time series modelling and forecasting techniques).
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Why Financial Analytics is important Today’s businesses needs timely information that helps the business people to take important decisions in business.
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  • Fall '20
  • Financial Analytics

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