20 hours online course on Bloomberg Aptitude Test, BAT: http://www.wiziq.com/course/7526-bloomberg-assessment-test-bat-exam-prep

1. Bloomberg Aptitude Test Prep
(20 hours Online Course)
Shivgan Joshi
shivgan3@gmail.com
From the author of
http://stockcreditfinancecfa.blogspot.in/

2. 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)

3. 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

4. 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

5. Content
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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

6. 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

7. 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.

8. 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.

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

10. Quant & Verbal

Logical Reasoning

Quant

Verbal

Strategy for geometry, probability, reading comprehension, critical
reasoning, table formation.

1 set of questions

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

12. News Analysis
 News of Financial Markets.
 Chart of the day.
 Importance
of federal reserve and market direction.
 Reading bloomberg.com
& Reuter.com.

13. 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.

14. 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

15. 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.

16. 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).

17. GMAT vs BAT vs CAT
 RC
 CR
 Analytical Questions.
 Modeling question.
 Even the new section included which is Analytical Reasoning.

18. CMT vs BAT
 Chartered Market Technician is Taken by MTA
 Charts at Terminal
 Bull vs Bear
 Reversal
 Support

19. CFA L2
 Equity (transaction vs trading multiples).
 Corporate Finance: corporate action.
 Financial Reporting Analysis: Consolidation.
 International economics.
 Cash flow calculations.
 Mistakes Improvement.

20. 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

21. 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.

22. 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.

23. 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.

24. 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.

25. 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.

26. 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.

27. 6: Global Markets Sensitization
 Numerical
 Greece, Spain & Italy
 CDS
 EU Crisis
 Low scoring area after accounting
 UK / Japan / EU / Latin America

28. 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.

29. 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.

30. 8: Financial Market
 Capital Markets is another where people score low accuracy.
 Derivatives and Exotic financial instruments like Volatility Trading,
ETFs, CDS.

31. 9: Financial Market
 Important Area.
 Chart of the Day: Bloomberg website.
 Which one to do first and which one to do last.

32. 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.

33. 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.

34. References
 www.stern.nyu.edu/~adamodar/pdfiles/Bloombergfull.pdf
 Bloomberg Institute (website)

35. THANK YOU