🌳 CA Final · Paper 2 COMING SOON

Advanced Financial Management

Derivatives, forex, portfolio, valuation — the computation-heavy paper practised until the calculator moves itself.

Free tier first, always. 20 MCQs a day, no card.

Full syllabus — 15 chapters

Inside Advanced Financial Management

ICAI New Scheme (15 chapters, incl. Startup Finance)
  1. Financial Policy and Corporate StrategyLinkage of financial decisions to corporate goals — mostly theory, 4–6 marks, strong opener if you know the frameworks.
  2. Risk ManagementTypes of risk, VaR, hedging strategies — conceptual base for the entire paper; tested both standalone and inside case scenarios.
  3. Advanced Capital Budgeting DecisionsAPV, real options, capital rationing — decision-making under uncertainty; 10–16 mark computations appear every attempt.
  4. Security AnalysisFundamental and technical analysis, EIC framework — sets up valuation; theory marks are often left on the table.
  5. Security ValuationBond duration, equity DDM, YTM — computation-heavy; bond valuation questions are predictable and high-scoring.
  6. Portfolio ManagementMarkowitz, CAPM, Sharpe/Treynor/Jensen — portfolio math is tested most attempts; know beta and alpha derivations cold.
  7. SecuritizationPass-through, pay-through structures, credit enhancement — conceptual chapter, 5–8 marks; differentiates average from good scorers.
  8. Mutual FundsNAV computation, types, expense ratios — reliable 5–8 mark question; one of the faster chapters to prepare.
  9. Derivatives Analysis and ValuationFutures, options (BSM), swaps — highest individual mark weightage in AFM; options pricing alone can be 15+ marks.
  10. Foreign Exchange Exposure and Risk ManagementForward cover, money market hedge, cross rates — forex is tested every attempt, often 10–14 marks; learn all 4 hedging methods.
  11. International Financial ManagementForeign investment decisions, cost of capital across borders — links forex and capital budgeting; case-scenario favourite.
  12. Interest Rate Risk ManagementDuration gap, FRAs, interest rate swaps, caps/floors — frequently paired with forex for a combined 16-mark question.
  13. Business ValuationDCF, relative valuation, EV methods — valuation appears in almost every paper; know the model differences clearly.
  14. Mergers, Acquisitions and Corporate RestructuringSwap ratios, EPS impact, DLOM — M&A questions typically 10–12 marks; computation steps are straightforward if practised.
  15. Startup FinanceVenture capital methods, ESOP valuation, convertible notes — new-scheme chapter; 5–8 marks conceptual or short computation.

Chapter list as per the current ICAI New Scheme study material. Every Pookie question cites its ICAI source; solutions follow ICAI marking-scheme structure.

How it works here

Question → your attempt → marks per step

You answer first. Then the solution opens step by step, with the marks each step carries — so you see exactly where answers gain and lose marks in the real exam.

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