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EduPristine>Blog>6 Steps to Score 70%+ in Equity

6 Steps to Score 70%+ in Equity

November 25, 2012

CFA Equity

source:teamboom

Dear CFA® Program Level I Candidate, With less than a week left to your exam date, we hope you are practicing questions and mock test keeping the Commandments and Sins in mind.

In this session, we will share with you the Commandments and Sins of Equity Investments.

  1. Remember that technical analysis is a direct violation of weak-form EMH and Fundamental analysis is a direct violation of semi-strong from EMH
  2. Concepts that need to be crystal clear before entering the exam hall: The difference in FCFE and FCFF and which discount rate is applicable under both of them is of utmost importance.
  3. Don’t forget to discount the terminal value while calculating the intrinsic value of a stock in the exam. This is a general mistake which students do.
  4. Never confuse between the required rate of return and the growth rate in the Gordon Growth Model Equation.
  5. The top-down approach is a method of valuation that begins with first analyzing the overall economy and then continuing to drill down to the specific analysis.
  6. Enterprise Value (EV) = Market Cap (of Equity) + Market Value of Debt – Cash and Cash Equivalents (including marketable securities)

We hope that the above points were useful for your preparation. We will send you such useful information before the exam. If you want to know about a particular topic please write to us at help@edupristine.com.

You can get some useful downloads for CFA exams. You can also buy some recordings for the topic of your choice on our page.

If you want to see what questions others are asking then please visit our forum.

Please feel free to write to us for any help regarding your CFA® exams.

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EduPristine is a member of Adtalem Global Education (NYSE: ATGE), a global education provider headquartered in the United States. Adtalem is a 3 billion dollars (20,000 crores) company that has about 9 institutions and companies with more than 16,000 employees spread across 145 locations. Adtalem takes pride in training 142,000 degree-seeking students all over the world.The organization's purpose is to empower students to achieve their goals, find success and make inspiring contributions to our global community. EduPristine is one of India's leading training providers in Analytics, Accounting, Finance, Healthcare, and Marketing. Founded in 2008, EduPristine has a strong online platform and network of classrooms across India and caters to self-paced learning and online learning, in addition to classroom learning

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