Features of a good financial model

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The conversations circled around these areas:

(i) The Financial Analyst realised that you are studying Financial Modelling. He mentioned that he often used financial models as a tool to make decision.

(ii) The Relationship Manager also mentioned that she often used financial models as a tool to help her prospects and existing clients to perform personal risk analysis and financial planning.

(iii) The FX Trader however, mentioned that he never used any financial model or formula but merely depend on financial news, technical analysis and charting for his FX Trading.

(a) The boss expects you to write him a report . In the report, examine what you have learned during your internship by listing at least five (5) observations as operating rhythm at the Relationship Management and Quant team, how you have applied your financial modelling knowledge and etc.

(b) In addition, in the report, include your opinions (with at least two (2) supportive arguments) on whether you are agreeable with:

(i) the financial analyst, on the features of a good financial model that allow it to be used as a tool for making sound investment decision;

(ii) the relationship manager, on which aspects of financial modelling could assist in the process of financial planning;

(iii) the FX trader, on the relevancy of financial modelling in trading.

Reference no: EM132799664

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