Durham University (DUT)

Struggling to translate finance theory into Excel formulas? This 25-page comprehensive guide walks you through over 30 essential financial functions with step-by-step instructions and real-world logic. It doesn’t just show you what to type it explains why you are typing it.

Master OVB with this focused guide. Covers: What is OVB, the two conditions (affects Y AND correlated with X), the OVB formula, determining bias direction with the sign rule table, classic examples (education/ability, class size/income), why sample size doesn't fix OVB, solutions (include variable, IV, fixed effects). Includes direction table, worked examples, and common exam questions with model answers. 4 pages, printable.

Everything you need to know about Instrumental Variables in one focused guide. Covers: When you need IV (OVB, simultaneity, measurement error), the two conditions for valid instruments (relevance & exogeneity), 2SLS procedure step-by-step, weak instruments and the F>10 rule, classic examples (returns to education, class size), IV vs OLS comparison. Includes worked examples, formulas, and common exam questions with answers. 4 pages, printable.

4 professional decision flowcharts for Econometrics: (1) "Which Test Should I Use?" - t-test vs F-test decision tree with critical values, (2) "How to Interpret Regression Output" - 6-step guide from model fit to economic significance, (3) "OVB Diagnosis Flowchart" - step-by-step process to identify and determine bias direction, (4) "Panel Data: Which Method?" - Pooled OLS vs Fixed Effects vs Random Effects decision guide. Full colour, printable A4 format. Perfect for exa...

Complete interactive Excel toolkit for Econometrics. Contains 6 worksheets: (1) Regression Output Interpreter - enter coefficients and SEs, get t-stats, p-values, and significance automatically, (2) OVB Direction Finder - input correlation and effect, get bias direction instantly, (3) Hypothesis Testing Calculator - calculates t-stat, critical values, p-values, and confidence intervals, (4) Log Interpretation Guide - enter coefficient and model type, get plain English interpretation, (5) F-Test ...

Comprehensive 13-page Stata guide tailored to ECON2061 Econometrics. Covers EVERYTHING you need: (1) Loading data & setup, (2) Descriptive statistics & exploration, (3) Creating & modifying variables, (4) OLS regression with robust SEs, (5) Factor variables & interactions (i. and ## syntax), (6) Hypothesis testing (t-tests, F-tests, test command), (7) Panel data & Fixed Effects (xtset, xtreg, clustered SEs), (8) Binary outcomes (LPM, Probit, Logit, marginal effects), (9) Instrumental Variables /...

Everything about cost of capital in one guide. Covers: What is cost of capital, cost of equity (CAPM and DDM methods), why debt is cheaper than equity, after-tax cost of debt and tax shield, the WACC formula with full worked example, using WACC as discount rate, when WACC is appropriate (and when it isn't), market vs book values. Includes step-by-step calculation example and common exam questions. 4 pages, printable.

Complete guide to investment appraisal. Covers: NPV formula and decision rule, worked NPV calculation, IRR definition and decision rule, NPV vs IRR comparison table, when NPV and IRR conflict (and why NPV wins), problems with IRR (multiple IRRs, scale, reinvestment assumption), brief coverage of payback period, why NPV is the best method. Includes worked examples, formulas, and common exam questions. 4 pages, printable.

Master CAPM and Beta with this focused guide. Covers: The CAPM formula and components, understanding beta (defensive vs aggressive stocks), worked calculation examples, the Security Market Line (SML), identifying mispriced stocks (above/below SML), portfolio beta calculation, systematic vs unsystematic risk, CAPM assumptions and limitations. Includes beta interpretation table, alpha calculation, and common exam questions with answers. 4 pages, printable.

2 professional decision flowcharts for Finance: (1) "Investment Appraisal Decision Tree" - NPV vs IRR vs Payback, when they conflict, why NPV always wins, mutually exclusive project decisions, (2) "Stock Valuation Using CAPM & SML" - step-by-step guide to calculate required return, compare to actual return, and determine if stock is undervalued/overvalued. Full colour, printable A4 format. Includes comparison tables and decision rules.