This level is aiming to measure whether a candidate would be able to apply Financial Market Principals to different scenarios and real world examples. To this end they need to exhibit the competence required for the Foundation qualification, and show that they can apply and tune the studied material to address different situations and problems of a specific scenario, specifically, candidates must be able to:
- Explain what a different financial markets are, how they work and the relationship between them.
- Explain what the Bond Market, the Derivatives Market, Options Market, Commodities Market, Futures Market and Foreign Exchange Market are and how they work.
- Explain how the valuation of different financial instruments work, their concept and apply them to different scenarios.
- Explain different Funds their risks and advantages as well as their concept and usage.
- Explain the financial instruments that are traded on a stock market.
- Explain the role and function of different participants in a stock market.
- Explain the concept and difference between different types of investment forms and investment strategies.
- Explain the different trading styles their risks and potentials.
- State different technical analysis concepts and techniques.
- Explain different stock market crashes what lead to them, how they formed and how they developed.
- Explain the financial basics in investment theory, behavioral finance.
- Explain, Alpha, Beta, WACC, the EMH, the AMH, CAPM, Arbitrate Pricing Theory and the Portfolio Theory.
- State the main purpose, and key contents, of the major stock exchanges and their indices.
Exams
To become a CFMP Practitioner please contact the Management Laboratory under:
exams (at) management-laboratory (dot) com
Exams are usually held in universities that are accredited by the local govern-ment or the German embassy. For prices please contact the Management Laboratory since these may vary significantly from country to country. Finance Professors that are interested in group exams for their students are very wel-come to contact us about free examinations.
Format:
- Multiple-chose as well as 6 questions, with a scenario background and appendices.
- Each of the 6 questions with a scenario background is worth 20 marks.
- The Multiple-choice questions are worth 40 marks.
- An overall score of 100 out of a possible 160 is required to pass.
- Two hour duration.
- Open-book examination (only the Financial Markets Principals Book by Christoph Lymbersky is allowed. Notes can be written into the book. Post-its must not be bigger than 10cm x 10cm.)
Candidates who have passed the CFMP Practitioner examination can put CFMP Practitioner on their business cards. The use of the CFMP Logo however re-quires authorisation by the Management Laboratory.