Bloomberg Assessment Test

Prep
3+3 hours Course
(Beta Version & Prep Guide)
From the author of
http://stockcreditfinancecfa.blogspot.in/

Content (6 hrs plan)

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

Class Topic
No.
1

Strategy
to
Assessment test

Class
duration
take

Bloomberg (0.5 hrs)

2 & 3 FRA/Corporate/Equity Valuations/Ratios (1 hrs)

4

Investment Banking

(1 hrs)

Bloomberg terminal

(0.5 hrs)

6 & 7 Bond/Fixed Income Market/ Derivatives (1 hrs)

8

Economics revision/Federal Reserve

(1 hrs)

Interpreting Market News

(.05 hrs)

10

Analytical Reasoning

(.05 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:
BAT_Demo.pdf
BAT_Presentation.pdf
SampleQuestions.pdf

About the Author

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
Websites
1. www.freegregmatclass.com
2. stockcreditfinancecfa.blogspot.in

AGENDA FOR NEXT 3

HOURS

QUANT & VERBAL (45 MINUTES)

Logical Reasoning
Quants
Verbal
Strategy for geometry, probability, reading
comprehension, critical reasoning, table making
1 set of questions

ABOUT BLOOMBERG (15 MINUTES)

B-terminal (ticker) data from Bloomberg
Reuter RIC
Importing on excel
Shortcuts
Basic idea about terminals like Factset, capital
IQ, etc

BLOOMBERG TERMINAL

NEWS (15 MINUTES)

New of Financial Markets
Chart of the day
Importance of federal reserve and market
direction
Reading bloomberg.com & Reuter.com

OPEN CHART OF THE DAY

ADVANCED EQUITY VALUATION (30

MINUTES)
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

ENTERPRISE VALUE &WEIGHTED

AVERAGE COST OF CAPITAL

Enterprise value =common equity atmarket

value+preferred equityat market value+minority
interestat market value, if any+debtat market
value+unfunded pension liabilitiesand other debtdeemed provisions-associate companyat market
value, if any-cashand cash-equivalents

INVESTMENT BANKING (30

MINUTES)
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

BAT Strategy
Leave no weakness: Importance
of balance
Have it all ready for the exam
Play time bound game
Explore public files

CFA L1 vs BAT
All topics of CFA L1 are important
1. Economics & FSA (imp)
2. Fixed Income, Equity & Corporate
Finance (imp)
3. Derivatives (less imp)
4. Portfolio Management, AI, Quant
(less imp)
. CFA Formula Sheet is very useful
. FRSA is lowest mean, means it is

FRM L1 vs BAT
Many questions deal 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 Improvements

1: Introduction to BAT
150 questions-3hrs-12sections:
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 4
All real relevant areas covered

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

5: Fixed Income & Bond market

Real terms in market based on news
analysis
Many questions in this area
Duration & Convexity
Treasury, Corporate Bond
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,

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: 30 Question Financial Market

The longest 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
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 for BT
www.stern.nyu.edu/~adamodar/p
dfiles/Bloombergfull.pdf