Dr MK Dhasan, Professor of Finance at IIM Raipur assigned Financial Analysis and SAPM practice tests as part of 3 courses over past 1 year at IIM Raipur and IIM Ranchi. The automated practice tests (simulations) with live company data have been designed to promote experiential learning, an important need in education. This blog, our second in this series, details our experience of use of simulations as tests with 300 students across 2 regular course MBA batches and a batch of experienced students from leading corporates.
This blog is covers the following important aspects of the financial analysis and SAPM practice tests:
Important features of the tests
Detailed description of the test simulations
Feedback from Professor MK Dhasan
Important features of the Simulation Test Assignments
Prof MK Dhasan selected 2-3 simulations as tests in each of his courses
Solutions were not provide (unlike in certifications product). However students were provided with multiple attempts to solve the simulations
The practice tests were compulsory and students had 1 week to complete the tests
Each simulation is built using real-time data from Indian listed companies.
The test have inbuilt scoring capture feature which not only captures the scores but also online delivers the scores for the candidate to the Professor.
The simulations also have several inbuilt anti copying features that ensure that each candidate has to complete the project by himself.
The Simulation Tests
Brief details of live financial analysis practice excel projects were as below. Each of these simulations uses real-time data for a listed company and works on multiple companies so that each student gets different company to work on.
Compute ratios and undertaking Comparative Ratio Analysis of two companies operating in the same industry. The task is to identify reasons for the share price trend of the two companies
Understand and undertake In-depth Financial Analysis from live company data belonging to the cement, paint, FMCG and automobile industry. The task involved comprehensive analysis of various financial attributes of the listed company
Portfolio simulation game. Here the students get backdated financial data pertaining to 10 listed companies (name withheld). The students are required to invest in any 4 companies to generate best possible returns over a 1 year period. The entire simulation is required to be completed within 45 minutes while in class. Once the students complete their selection, the simulation computes actual returns achieved by the student. At this stage, the students gets to know which companies he has invested. The scores are also tabulated for all students to enable a good discussion around the winner and loser stocks.
Compute Financial Ratios - Profitability, Solvency, Liquidity ratios and Valuation Ratios from live company data.
Should you wish to learn our full range of simulations in the financial analysis subjects, please review our Simulations Compendium. We also have a blog on financial analysis simulations here. We have developed over 80 real time simulations across 10 important finance subjects suitable for developing most finance skills.
How these workouts help a student
Provides extensive usage to live corporate data and also builds excel skills, necessary in the corporate world.
The student learns by Doing. Multiple attempts are provided so that mistakes are resolved.
A batch of students are auto scored and scores are instantly available for discussion in the class.
Professor MK Dhasan’s Testimonial
“Our students from PGP and PGPMWE have used multiple financial analysis and security analysis and portfolio management (SAPM) simulations. My students had enjoyed doing the simulation that uses live data of listed companies. It helps them to contextualize learning into practice. The assessment feature of the simulation game is also much appreciated by them. I wish you all the very best in your mission to bring contextualized live finance simulations for use in testing and training f or management graduates.”
Students experience was overwhelmingly positive. 96% of the students were able to complete the test assignments and very good scores. Student feedback was also very good. Notable feedback:
“The simulations provided are apt for practicing knowledge acquired. It helps you find loopholes in your understanding of various concepts and further strengthens your foundation” Vishal Singh
“Analyzing companies through these simulations allowed me to gather the much required skills in interpreting the financial performance of the companies” Kshitij Rastogi
How does the Simulation work
Students download a simulation as a password-controlled excel workbook. At the time of download, real-time data of a listed company is downloaded from our live terminal. A student has to solve and provide answers in the solution sheet. Based on answers, a scoring mechanism scores students answers and computations. The structure of the simulation is designed to depict a corporate work situation.
This full sample video shows how the simulations on cash flow statement preparation from a provided Income statement and balance sheet.
We are thankful to Professor MK Dhasan, IIM Raipur to introduce our Simulations in his class.
Thank you for reading about the innovative initiative to bring experiential learning to students and candidates. More information is available at www.equitylevers.com.
Our future newsletters will focus on experiences at leading colleges with our real-time simulations in other subjects, including valuations, modelling, fixed income, Investments, derivatives etc.