Investment Analysis and Portfolio Management Module (Intermediate) Practice Exam

Investment Analysis and Portfolio Management Module (Intermediate) Practice Exam

The Investment Analysis and Portfolio Management Module (Intermediate) Exam validates your understanding of investment analysis and portfolio management principles. Earning this certification demonstrates your ability to analyze investment opportunities, construct well-diversified portfolios, and make informed investment decisions.

Who Should Take This Exam?

This certification is ideal for individuals seeking to:

• Enhance Investment Knowledge: Investors aiming to gain a deeper understanding of investment analysis and portfolio management techniques.
• Pursue Investment Careers: Individuals aspiring to careers in financial planning, wealth management, or investment advisory services.
• Advance in the Financial Sector: Financial professionals seeking to elevate their knowledge and expertise in investment analysis and portfolio management.

There are no formal prerequisites for taking this exam. However, a foundational understanding of financial markets and basic investment concepts would be beneficial.

Roles and Responsibilities 

• Financial Advisor: Providing personalized investment advice and portfolio management services to clients.
• Wealth Manager: Developing and implementing comprehensive wealth management strategies that incorporate portfolio management principles.
• Investment Analyst: Conducting research and analysis of investment opportunities to inform investment decisions.
• Portfolio Manager: Managing investment portfolios for individuals or institutions, adhering to risk-return objectives.

Exam Details

• Duration: 120 minutes
• No. of questions: 60
• Maximum marks: 100, Passing marks: 60 (60%); There is negative marking for incorrect answers.
• Certificate validity: For successful candidates, certificates are valid for 5 years from the test date.

Course Outline

The exam covers the following topics:

1. Objectives of Investment Decisions

• Introduction; Types of Investors; Constraints; Goals of Investors.

2. Financial Markets

• Introduction, Primary and Secondary Markets; Trading in Secondary Markets; Money Market; Repos and Reverse Repos; Bond Market; Common Stocks."

3. Fixed Income Securities

• Introduction-Time Value of Money; Simple and Compound Interest Rates; Real and Nominal Interest Rates; Bond Pricing Fundamentals; Bond Yields; Interest Rates; Macaulay Duration and Modified Duration

4. Capital Market Efficiency

• Introduction; Market Efficiency; Departures from the EMH

5. Financial Analysis and Valuation

• Introduction; Analysis of Financial Statements; Financial Ratios (Return, Operating and Profitability Ratios); Valuation of Common Stocks; Technical Analysis."

6. Modern Portfolio theory

• Introduction; Diversification and Portfolio Risks; Equilibrium Models The CAPM Multifactor Models; The Arbitrage Pricing Theory.

7. Valuation of Derivatives

• Introduction; Forwards and Futures; Call and Pu Pricing; Black- Scholes Formula

8. Investment Management

• Introduction; Investment Companies; Active vs. Passive Portfolio Management; Cost of Management –Entry/Exit Loads Fees; Net Asset Value ; Classification of Funds ; Other investment companies; Performance assessment of managed funds