Professional Finance Studies (PFS)

28/04/2026

Net Interest Margin is arrived by dividing the Net Interest Income by Average Interest Earning Asset. On the other hand, Spread is the difference between the yield on assets and cost of liabilities.

24/04/2026

In Investing, being right is a necessary but not Sufficient Condition. One has to be more right than others.

17/04/2026

Market structure can be broken down into four distinct categories: perfect competition, monopolistic competition, oligopoly, and monopoly.

# CFA

16/04/2026

In the CFA Program, Level I builds knowledge, Level II tests how we apply it. Level III brings it into practice.

16/03/2026

Type I error is called 'False Positive' which is the probability of rejecting the null hypothesis when it is true. On the other hand, Type II error is 'False Negative', which indicates the probability failure to rejecting the null when it is false.

11/03/2026

EV/EBITDA multiple is more appropriate compared to P/E multiple for comparing companies that have different levels of Leverage. It is also more appropriate for capital intensive businesses.

06/03/2026

The line above the minimum variance portfolio is called the efficient frontier. By superimposing the capital allocation line over the efficient frontier, we can have even better risk-return trade off.

02/03/2026

Understanding return distribution is important in order to understand the risk return characteristics of asset classes. In this lecture, I discussed the characteristics of Normal Distribution, what happens when there is asymmetry and what if the distribution is fatter than normal. Finance students, CFA and FRM candidates may find this lecture useful.

27/02/2026

Portfolio Return can be calculated by taking the weighted average of individual asset's return. While portfolio risk will also consider the correlation among the assets.

27/02/2026

Leverage is a two way sword. It magnifies both the gains and losses. When market is bullish, leverage increase investor's return on equity. However, during the market downturn, levered investors are the ones who experience the most downsides.

26/02/2026

23/02/2026

Free Cash Flow to Firm is the cash flow available to company's suppliers of capital after all operating expenses (including taxes) have been paid and and necessary investments in working capital and fixed capital have been paid.