A candidate who passes this paper should be able to:
- Select and apply the techniques and concepts of the time value of money, compounding, discounting, and annualising
- Analyse the risks and returns offered by short-term, liquid instruments
- Calculate non-complex risk and return measures
- Calculate the cost of capital of a firm
- Apply the basic valuation models to determine value of financial securities
- Evaluate the viability of capital investments using appropriate appraisal