Bloomberg Aptitude Test Prep (20 hours Online Course)

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Course Structure
Class No. 1 Topic Strategy to take Bloomberg Assessment test Class Duration (1 hrs)

2&3

FRA/Corporate/Equity Valuations/Ratios

(4 hrs)

4 5

Investment Banking Bloomberg terminal

(2 hrs) (1 hrs)

6&7

Bond/Fixed Income Market/ Derivatives

(4 hrs)

Economics revision/Federal Reserve

(2 hrs)

9 10

Interpreting Market News Analytical Reasoning

(2 hrs) (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 Computing

of formula EV/EBITDA

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 anycash 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. 2.

Duration & Convexity 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