Bloomberg Aptitude Test Prep(20 hours Online Course)

Shivgan Joshishivgan3@gmail.comFrom the author of

http://stockcreditfinancecfa.blogspot.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 forthe 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 thecapability to use information from news articles.

Economics – Consists of 12 Questions designed to assess theapplication of Economic Concepts.

Math Skills – Consists of 14 Questions designed to assess thebroad-spectrum math skills, with an emphasis on finance relatedmath.

Analytical Reasoning – Consists of 12 Questions designed toassess the problem solving ability.

Exam Sections (Contd…)

Financial Statement Analysis – Consists of 12 Questions designed toassess the basic understanding of financial statements.

Investment Banking – Consists of 12 Questions designed to assess howone applies the fundamental principles of financing & strategicadvisory performed by an Investment Banking.

Global Markets – Consists of 14 Questions designed to assessfamiliarity with a broad range of concepts, current events, and trendsin the global financial markets that are presented in the media.

Chart & Graph Analysis – Consists of 12 Questions designed to assessyour ability to interpret and use information found in charts andgraphs.

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, criticalreasoning, 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. Healthcareetc

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 beworking 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 thecompany once the deal goes through) in M&A.

Stock-exchange, debt, equity, and combined debt/equity payments inM&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 & P500.

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