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                                  formulas and its                                                                                                                                                 Delhi - 12th Feb, IMA,
                                  application in charts                                                                                                                                            ITO.
                                  - Wonderful for
                                  remembering all the
                                  formulae in a structured                                                                                 Quantitative Analysis
                                                                                                                                           Quantitative Analysis

                                  - Covers the entire                     Random Measures of Central
                                                               Prob. & Prob.
                                                                          variables tendency
                                                               Prob. & Prob.
                                                                                         Random  Variance
                                                                                                              Measures of Central
                                                                                                                                                    Variance                Standard Error
                                                                                                                                                                                                       Hypothesis Correlation
                                                                                                                                                                                                        Testing   Regression      Correlation &

                                  syllabus in A3 size                                                                                             Avg. of squared
                                                                                                                                                  deviations from                                       B  B                            C
                                  glossy posters with more                              ¡Æn
                                                              Binomial Random Variablei that occurs more
                                                                                                                  Mean: ¡Æi/n
                                                                                                                                                                                      x)                       of
                                                                                                                                                                                 SE (£m of the sample mean is £m the dist. of sample means
                                                              Binomial Random Variable
                                  than 30 flowcharts          E(X)=n*p
                                                                  )=n*p*(1      Mode:
                                                              Var(X)=n*p*(1-p)=n*p*q frequently          Mode:-Value that occurs more
                                                                                                                                                    Sample variance
                                                                                                                                                 s2 =[¡Æ (Xi -X )2]/(n-1)
                                                                                                                                                                                                   x= / ¡Ô
                                                                                                                                                                                 •Known pop. Var. £m £m (n)
                                                                                                                                                                                 •Unknown pop. var sx= s/ ¡Ô

                                  which can be put at your                           :-Midpoint of data
                                                                                  Median in ascending order
                                  study place                                    normalized
                                                              Standardized RV is arranged
                                                              Standardized RV is normalized
                                                              mean= 0,1.
                                                                                                            Median:-Midpoint of data
                                                                                                                                                 Population variance                2
                                                                                                                                                                               Q. £mreturn of stock P= 100.0         Q. observation
                                                                                                                                                                                                                     Q. 25 observation are taken
                                                              mean = 0, £m 1.
                                                                                                          arranged in ascending order             2    N (X )2
                                                                                                                                                 £m=[¡Æi=1 i -£g ]/N            2
                                                                                                                                                                               £mreturn of stock Q=225.0             from a sample o
                                                                                                                                                                                                                     from a sample of unknown
                                                                                                                                                                                                                     variance.You wis
                                                                                                                                                                                                                     and 60. aSample
                                                                                                                                                                               Cov (P,Q) =53.2                       variance. Sample mean of 70
                                  - Available for INR         Z # £m is from population
                                                               -score:a given
                                                              Z-score: # of £m given
                                                                                                     Q. At a particular time, the market
                                                                                                     value of assets of the firm is $100
                                                                                                                                                                               Current Holding $1 mn in P.
                                                                                                                                                                               New Holding: shifting $ 1
                                                                                                                                                                                                                        £m -tailed test
                                                                                                                                                                                                                         =  =
                                                                                                                                                                                                                     and £m 60. You wish to
                                                                                                                                                                                                                     conduct two t
                                  500/- including taxes,      observation
                                                              observation is from population
                                                              mean.                                  Mn and the market value of debt is
                                                                                                                                                 Standard deviation
                                                                                                                                                                               million in Q and keeping USD
                                                                                                                                                                                                                     conduct a two - tailed test of
                                                                                                                                                                                                                     null hypothesis
                                                                                                                                                                                                                     null hypothesis that the mean
                                                              Z=(x-£g s
                                                                                                     $80 Mn. The standard deviation of
                                                                                                     assets is $ 10 Mn. What is the
                                                                                                                                                    = ¡Ô
                                                                                                                                                                               3 million in stock P. what
                                                                                                                                                                               %age of risk (£m is reduced?
                                                                                                                                                                                                                     is equal to 50. W
                                                                                                                                                                                                                     is equal to 50. What is most
                                                                                                                                                                                                                     appropriate Erro
                                                                                                                                                                                                                     appropriate test statistic?
                                  and USD 50/- for                                                   distance to default?                        Var(ax+by)=a2  var(x)         Ans. £m [w2 A + (1-w)2£m
                                                                                                                                                                                       P=¡Ô £m   2
                                                                                                                                                                                                                       ) Standard =
                                                                                                                                                                                                                     Ans. Standard Error of mean
                                                                                                     Ans. z = (A-K)/ £mA                           + b2var(y)+2ab              +2w(1-w)Cov(A,B)]                         =
                                                                                                                                                                                                                      x £m
                                                                                                                                                                                                                        x)/  / ¡Ô
                                                                                                                                                                                                                     (£m = £m (n)
                                                                                                                                                                                                                      = 60/sqrt(25)
                                  payments outside India                                                      = (100-80)/10                                                    w= 0.75

                                                                                                                                                       cov(x,y)                                                       = 60/sqrt(25) = 12
                                                                                                              =2                                                               c2 = 100*(0.75)2 + 225*(0.25)2                  of
                                                                                                                                                                                                                     Use statisticfreed
                                                                                                                                                                                                                     Degrees-£g== (x
                                                                                                                                                                                                                     Degrees of freedom = 24
                                                                                                                                                                                                                         T      £m
                                                                                                                                                                                                                        -50)/12)/ 1.67
                                                                                                                                                                               +2*0.25*0.75*53.2                                             )/ x
                                                                                                                                                                                                                     Use T statistic = (x - £g £m=
                                  - Courier charges extra                                                                                                                      £m 9.5
                                                                                                                                                                                P=                 = 100
                                                                                                                                                                                            old £m ¡Ô = 10
                                                                                                                                                                               Reduction = 5%
                                                                                                                                                                                                                     (70        =
                                                                                                                                                                                                                     (70 - 50)/12 = 1.67

                                  for shipments outside
         ®                                                                                       ®
 CFA Level I                                                                            CFA Level II
Day 1 and 2                 ?   Time Value of Money                                     Day 1                         ?   Correlation and Regression
                            ?   Discounted Cash Flow Applications                                                     ?   Multiple Regression and Issues in
Quantitative Analysis       ?   Statistical Concepts and Market return                  Quantitative methods
                                                                                                                          Regression Analysis
                            ?   Probablity Concepts                                     for valuation                 ?   Time-Series Analysis
                            ?   Common Probability Distribution
                            ?   Sampling and Estimations                                Day 2                         ?   Portfolio Concepts
                            ?   Hypothesis Testing                                                                    ?   International Asset Pricing
                            ?   Technical Analysis
                                                                                        Portfolio management          ?   The Theory of Active Portfolio
Day 3 and 4                                                                             Day 3 & 4                     ?   Capital Budgeting
                            ?   Market Structure and Macroeconomic Analysis                                           ?   Capital Structure and Leverage
Economic                                                                                Corporate Finance             ?   Dividends and Dividend Policy
                                                                                                                      ?   Corporate Governance
Day 5, 6, 7 and 8           ?   Financial Statment Analysis: An Introduction
                                                                                                                      ?   Mergers and Acquisitions
                            ?   Financial Reporting Mechanics
Finance Reporting and       ?   Financial Reporting Standards
Analysis                                                                                Day 5 & 6                     ?   Economic Growth
                            ?   Understanding the Income Statment,Balance Sheet,                                      ?   Regulation and Antitrust Policy
                                Cash Flow System
                                                                                        Economics for valuation       ?   Trading with the World
                                                                                                                      ?   Measuring Economic Activity
                            ?   Inventories,Long Lived Assets,Income Taxes                                            ?
                            ?   Long Term Liabilities and Leases                                                      ?   The Exchange Rate and the Balance of Payments
                                                                                                                      ?   Foreign Exchange Parity Relations
                            ?   Financial Analysis Techniques
                            ?   Financial Reporting Qualities: Red Flags and            Day 7,8 and 9                 ?   Intercorporate Investments
                                Accounting warning Signs                                                              ?   Employee Compensation
                            ?   International Standards Convergence                     Finance Reporting and
                                                                                                                      ?   Multinational Operations
                                                                                        Analysis                      ?   Evaluating Financial Reporting Quality
Day 9                       ?   Money, the price Level and Inlation                                                   ?   Integration of Financial Statement Analysis
Monetary and Fiscal         ?   U.S Inflation, Unemployment and Business Cycles                                           Techniques
                            ?   Fiscal Policy                                           Day 10
                            ?   Monetary Policy                                                                       ?   Mock - Test as CFA standard pattern.
                            ?   An Overview of Central Banks                            Test
Day 10                     ?    Topic-wise doubt-clearing session                       Day 11 & 12                   ?   TValuation: Applications and Processes
Tests and Revision         ?    Practice exams                                                                        ?   Markets and Instruments
                                                                                        Equity valuation and          ?   Return Concepts
Day 11                      ?   Capital Budgeting                                       investments                   ?   The Five Competitive Forces that Shape Strategy
                            ?   Cost of Capital                                                                       ?   Industry Analysis
Corporate Finance           ?   Working Capital Management                                                            ?   Valuation in Emerging Markets
                            ?   Financial Statement Analysis                                                          ?   Discounted Dividend Valuation
Day 12 and 13               ?   The Asset Allocation Decision                                                         ?   Free Cash Flow Valuation
                            ?   An Introduction to Portfolio Management                                               ?   Market-Based Valuation
Portfolio Management                                                                                                  ?   Residual Income Valuation
                            ?   An Introduction to Asset Pricing Models
                                                                                                                      ?   Private Company Valuation
                           ?    Organization and Functioning of Securities Markets
                           ?    Security- Market Indexes                                 Day 13 & 14                  ?   General Principles of Credit Analysis
Equity Investments
                           ?    Efficient Capital Markets                                                             ?   The Liquidity Conundrum
                                                                                        Fixed Income                  ?   Term Structure and Volatility of Interest Rates
                            ?   An Introduction to Security Valuation                   FIXED INCOME:                 ?   Valuing Bonds with Embedded Options
                            ?   Industry Analysis                                       Valuation Concepts
                            ?   Company Analysis and Stock Valuation
                                                                                        FIXED INCOME:                 ?   Mortgage-Backed Sector of the Bond Market
                            ?   Introduction to Price Multiples
                                                                                        Structured Securities         ?   Asset-Backed Sector of the Bond Market
 Day 14 and 15              ?   Features of Debt Securities                                                           ?   Valuing Mortgage-Backed and Asset-Backed
                            ?   Risks Associated with Investing in Bonds                                                  Securities
Fixed Income and            ?   Overview of Bond Sectors and Instruments                                              ?   Forward Markets and Contracts
Alternative Investments                                                                 Day 15 & 16
                            ?   Introduction to the Valuation of Debt Securities                                      ?   Futures Markets and Contracts
                            ?   Yield measures, Spot Rates and Forward Rates            Derivative                    ?   Option Markets and Contracts
                            ?   Introduction to the Measurement of Interest Risk Rate
                            ?   Understanding Yield Spreads                                                           ?    Swap Markets and Contracts
                            ?   Alternative Investments                                                               ?    Interest Rate Derivative Instrument
                            ?   Investing in Commodities
                                                                                        Day 17                        ?   Investment Analysis
Day 16                      ?   Derivative Markets and Instruments                      Alternative Investment        ?   Income Property Analysis and Appraisal
                            ?   Forward,Future,Market,Option,Swap                                                     ?   Private Equity Valuation
Derivatives                 ?   Risk Management Applications of Option Strategies       Alternative asset valuation   ?   Investing in Commodities
                                                                                                                      ?   Evaluating the Performance of Your Hedge Funds
 Day 17                    ?    Code of Ethics and Processional Standards
                           ?    Guidance for Standards 1-8                              Day 18                        ?    Ethical and professional standards, Ethical and
Ethical and Professional   ?    Introduction to Global Investment                                                           Professional standards: Application
Standards                       Performance Standards                                   Ethics
 Day 18                     ?   Topic-wise doubt-clearing session
Tests and Revision          ?   Practice exams

                        Level I Completed                                                                         Level II Completed

 Course Structure
                   Pristine has the best faculty for preparation of the CFA exam. We have different experts for different areas and all our faculty are
                   experienced working professionals. Our instructors bring the practical knowledge along with the depth of theory. We have a pool of
                   more than 50 working professionals who teach our courses. The majority of the professionals are IIT/IIM and have passed different
                   levels of CFA exams. An indicative list of our instructors is given below-

                   Mr. Jain - MBA (Gold Medalist, NMIMS), CFA, FRM – working as a credit analyst for a leading private sector bank. Awarded as best
                   credit analyst for the bank. Expert in the domain of credit and operational risk management. Has been actively providing training to
                   various MBA colleges for many years.
 Faculty Profile

                   Mr. Khurana - B.Com, CFA – Head of the research wing of a large global brokerage house. Have been extensively involved with the
                   training and education across financial institutes and corporate. Active member of CFA association, Mumbai chapter.

                   Mr. Kumar - B.Tech ( IIT ), MBA ( IIM ), CFA - Worked for more than 4 years in Investment Banking and Private Equity. Provided in
                   house training on financial modeling.

                   Mr. Raju - Raju has worked with KPMG and as an equity investment analyst for a hedge fund. He had done his MBA from IIM Calcutta
                   and his B. Tech from IIT Bombay. He is also a CFA Level III exam candidate.

                   Mr. Prabhat - B.Tech (IIT), MBA (IIM) - Six years of experience in the area of Investment Banking and Risk Management. Worked in
                   senior management positions in Investment Banking in Standard Chartered and CRISIL. Co-authored articles on finance and banking in
                   national daily Hindu Business Line. Widely acknowledged faculty for risk management and author of highly read paper on BASEL – II.

                   Mr. Shah - BBA, MBA (IIM) - Eight years of work experience in the area of Investment Banking and corporate lending. Worked with
                   one of the largest investment banking firm in the world and. Successfully conducted many training sessions for CFA , FRM and PRM
                   Certification. Authored several articles and published research papers in the area of Finance.

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Description: Financial Management Solved Questions Scdl document sample