Topics Unique to PFM
Upon attending PFM Examination, candidate needs to be aware of various topics which are the uniqueness of PFM Curriculum.
You need to be able to answer these questions:
– Do you know that the widely held decision making rule on project feasibility has fundamental weaknesses which brings impact the decision even on the biggest projects?
– Do you know that the value of all asset classes are connected in such a way that has profound influence on portfolio management? How do you model the connection?.
– Do you know the real nature, how to model and connect concepts such as Enterprise Value, DCF, Residual Income, CFADS, NPV and many others. Do you know that they are all connected?
– How do you know if your project really adds value? Do you know how to calculate Return on Development (ROD)?
– Do you know that you must obtain risk free rate from government interest rates combined from all tenors instead of using a single data such as 10 year government bonds? How to model that?
– Do you know that feasibility metrics like NPV dynamically changes from time to time like equity price?
– How do you model methods like DCF, NPV and others by using multiple interest rates?
And many others.