Upload
qcfinance
View
330
Download
1
Embed Size (px)
Citation preview
Bloomberg Aptitude Test Prep (20 hours Online Course)
qcfinance.in
Course Structure
Class No. Topic Class Duration
1 Strategy to take Bloomberg Assessment test (1 hrs)
2 & 3 FRA/Corporate/Equity Valuations/Ratios (4 hrs)
4 Investment Banking (2 hrs)
5 Bloomberg terminal (1 hrs)
6 & 7 Bond/Fixed Income Market/ Derivatives (4 hrs)
8 Economics revision/Federal Reserve (2 hrs)
9 Interpreting Market News (2 hrs)
10 Analytical Reasoning (2 hrs)
11 Revision / Extra session (2 hrs)
Disclaimer
Copyright of all questions belongs to Bloomberg
This video is for non profit and research purpose
Based on 3 file which are on BAT Website:
1. BAT_Demo.pdf
2. BAT_Presentation.pdf
3. SampleQuestions.pdf
About the Author/Instructor
Instructor has 68% score on BAT, in aprox. top 90 percentile globally.
Cleared CFA L1, FRM L1 exams.
Have experience of teaching on Wiziq, taking classes on GRE and GMAT for the past 2 year.
Website/Blog: qcfinance.in & stockcreditfinancecfa.blogspot.in
Content
BAT Exam Structure
Strategy to take Bloomberg Assessment test
FRA/Corporate/Equity Valuations/Ratios
Investment Banking
Bloomberg terminal
Bond/Fixed Income Market
Economics revision / Federal Reserve
Interpreting Market News
Analytical Reasoning
BAT Exam Structure Bloomberg Assessment Test (BAT) consists of 8 sections with total of 100
questions to be completed in 2 hours.
Source: Bloomberg Institute
Exam Sections
News Analysis – Consists of 12 Questions designed to assess the capability to use information from news articles.
Economics – Consists of 12 Questions designed to assess the application of Economic Concepts.
Math Skills – Consists of 14 Questions designed to assess the broad-spectrum math skills, with an emphasis on finance related math.
Analytical Reasoning – Consists of 12 Questions designed to assess the problem solving ability.
Exam Sections (Contd…)
Financial Statement Analysis – Consists of 12 Questions designed to assess the basic understanding of financial statements.
Investment Banking – Consists of 12 Questions designed to assess how one applies the fundamental principles of financing & strategic advisory performed by an Investment Banking.
Global Markets – Consists of 14 Questions designed to assess familiarity with a broad range of concepts, current events, and trends in the global financial markets that are presented in the media.
Chart & Graph Analysis – Consists of 12 Questions designed to assess your ability to interpret and use information found in charts and graphs.
BAT Strategy
Leave no weakness: Importance of balance
Have it all ready for the exam
Play time bound game
Explore public files
Quant & Verbal
Logical Reasoning
Quant
Verbal
Strategy for geometry, probability, reading comprehension, critical reasoning, table formation.
1 set of questions
About Bloomberg Terminal
B-terminal (ticker) data from Bloomberg
Reuter RIC.
Importing on excel.
Shortcuts.
Basic idea about terminals like Factset, capital IQ, etc.
News Analysis
News of Financial Markets.
Chart of the day.
Importance of federal reserve and market direction.
Reading bloomberg.com & Reuter.com.
Advanced Equity Valuation
Sector to understand: Oil & Energy vs. Technology vs. Healthcare etc.
Adjustments & apple-apple comparison of intra sector Companies.
FCFE & FCFF for valuation.
Making Projection: Element by Element.
Intuitive understanding of formula EV/EBITDA.
Computing CFO from various methods.
Equity CFA L2.
Investment Banking
EV/EBITDA
Transaction vs. Trading multiple
Rating effect on spreads
Share buy back
Monte Carlo
Effect of P/E on acquisition
Synergy
Google buying Motorola (specials on patents)
IPO (Facebook)
Corporate Finance CFA L2
CFA L1 vs BAT
All topics of CFA L1 are important:
Economics & FSA (imp).
Fixed Income, Equity & Corporate Finance (imp).
Derivatives (less imp).
Portfolio Management, AI, Quant (less imp).
CFA Formula Sheet is very useful.
FRSA is lowest mean, means it is toughest.
FRM L1 vs BAT
Many questions that deals with rating agencies.
Kind of most talked about thing: The rating agencies.
Predicting Volatilities.
Foundation or Risk.
VAR (bonds and rating etc).
GMAT vs BAT vs CAT
RC
CR
Analytical Questions.
Modeling question.
Even the new section included which is Analytical Reasoning.
CMT vs BAT
Chartered Market Technician is Taken by MTA
Charts at Terminal
Bull vs Bear
Reversal
Support
CFA L2
Equity (transaction vs trading multiples).
Corporate Finance: corporate action.
Financial Reporting Analysis: Consolidation.
International economics.
Cash flow calculations.
Mistakes Improvement.
Advanced Equity Valuation
Sector to understand: Oil & Energy vs. Technology vs. Healthcare etc
Adjustments & apple-apple comparison of intra sector Companies
FCFE & FCFF for valuation
Making Projection: Element by Element
Intuitive understanding of formula EV/EBITDA
Computing CFO from various methods
Equity CFA L2
Enterprise value & Weighted Average Cost of
Capital Enterprise value =common equity at market value+ preferred equity at market
value+ minority interest at market value, if any+ debt at market value+ unfunded pension
liabilities and other debt-deemed provisions- associate company at market value, if any-
cash and cash-equivalents.
1: Introduction to BAT
Distribute time weighted on the questions in section.
BAT vs CFA vs FRM vs GMAT vs CMT vs Terminal: What matches where?
Exam has some part embedded from all.
Easy exam for those who have flavor or experience with all four.
All real relevant areas covered.
Excel at Bloomberg Terminal.
2: Bloomberg Terminal
Understanding what is it all about.
3 tutorials are there:
1. Bloomberg_Tutorial.pdf
2. Bloombergfull.pdf
3. Bloomberggetstarted.pdf
Helping in understanding how their platform looks which we will be working on.
3: Corporate Valuation (Equity)
Equity Valuations (CFA L2).
Trading Multiples P/E vs Transaction Multiples.
DCF: FCFF vs. FCFE.
Importance of EBITDA.
WACC computation and Beta.
Private company valuation.
Residual valuation.
4: Investment Banking M&A
Matrix questions of merger and acquisition.
Synergy and re pricing.
IPO for getting money, and effect of activity.
Determination of final stock prices of the acquiring company (price of the company once the deal goes through) in M&A.
Stock-exchange, debt, equity, and combined debt/equity payments in M&A.
EV multiples EV/EDITDA.
Investment Banking by J. ROSENBAUM J Wiley.
5: Fixed Income & Bond market
Real terms in market based on news analysis.
Many questions in this area: 1. Duration & Convexity
2. Treasury, Corporate Bond
3. ABS
More toward FRM as questions are tough.
Interpretation of News.
6: Global Markets Sensitization
Numerical
Greece, Spain & Italy
CDS
EU Crisis
Low scoring area after accounting
UK / Japan / EU / Latin America
News Items
General News interpretation and decisions.
Bond News for PIGS / Japan / Fed impacts.
News of recession in EU / UK.
Looking into the past to recession (correlation).
Recession creates arbitrage opportunity to earn money.
Correlation between Bonds, Commodity(gold and crude), S & P 500.
7: Economics
CFA l1 and l2 included like currency also.
Quantitative easing and its effect.
Interest rate effects on Current forwards.
Currency / interest rates / inflation.
Effect of Federal interest rates.
8: Financial Market
Capital Markets is another where people score low accuracy.
Derivatives and Exotic financial instruments like Volatility Trading, ETFs, CDS.
9: Financial Market
Important Area.
Chart of the Day: Bloomberg website.
Which one to do first and which one to do last.
10: Logical Reasoning questions CAT vs BAT
New Section added in GMAT.
Data arrangement.
Table-Astra (Astra in Sanskrit means “Weapon”).
Other questions with lots of Data on the screen.
Conclusion
100% Coverage to all major areas.
Strategy for exam.
Sensitization to all areas.
Tried to link BAT with other Exams.
Pointed out the difference and similarities.
References
www.stern.nyu.edu/~adamodar/pdfiles/Bloombergfull.pdf
Bloomberg Institute (website)
THANK YOU