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