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Business Chartered Financial Analyst (CFA)

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Oklahoma
post Jun 4 2020, 08:35 PM

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QUOTE(darthbii @ Jun 4 2020, 05:58 PM)
Ahh, something I would have liked to hear but am a bit skeptical on it as well. It might take a while for Malaysian companies to ride on the big data trend with the needed capital investment into infrastructure which would support it.

Anyway, having been in the IB industry, what are your thoughts on careers that integrate finance knowledge together with data tech like machine learning/AI? Are there such career paths in Malaysia or would it take real long before it comes here? Interested to hear being a soon-to-be finance graduate that has been messing around with Python & machine learning libraries at home.  biggrin.gif
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I think it really packs a punch to recruiters and companies out there looking for real talents. Great job mastering two different skill sets.

But dont be disappointed if they dont recognize your hard work and intrinsic talent. Just move on and accept a lower paying job, in context of Malaysia.

But anyhow, its a good start.

This post has been edited by Oklahoma: Jun 4 2020, 08:36 PM
darthbii
post Jun 5 2020, 05:53 PM

:C // C: // ;( // (;
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QUOTE(Oklahoma @ Jun 4 2020, 08:35 PM)
I think it really packs a punch to recruiters and companies out there looking for real talents. Great job mastering two different skill sets.

But dont be disappointed if they dont recognize your hard work and intrinsic talent. Just move on and accept a lower paying job, in context of Malaysia.

But anyhow, its a good start.
*
Aha, far from even mastering one what more both incredibly vast fields. tongue.gif

Yeah, Malaysia might take a while to catch up on advancements but who knows? nod.gif
Pewufod
post Nov 6 2020, 12:33 AM

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exam got postponed

https://www.cfainstitute.org/en/programs/cf...t-center-update
MotherOfGandalf P
post Dec 5 2020, 10:17 PM

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Hey guys, I'm not sure where else to ask for guidance on this. So here we go tongue.gif

CFA level 2, Alternative investments - Private real estate investment:



I've been confused about this equation here and here's where I've gotten so far.

*The growth rate is where it becomes confusing to me. I've listed down 4 scenarios here.





Cap rate = This year's rate of return = NOI/Property value

Discount rate = Investor's rate of return

Growth rate = (1)Growth in NOI? (2)Growth in Property value? (3)Growth in both NOI & Property value? (4) Growth in NOI based on Property value?





Calculation assumptions:

NOI = $100,000.00

Property value = $ 1,000,000.00

Cap rate = $100k/$1mil = 10%

Let Growth rate= 2%

So Discount rate should be 12%



(Scenario 1) Growth in NOI (quoted from Kaplan Schweser's Book 5 example)

NOI*1.02=$100k*1.02=$102k

However, at T1, this would become 10.2% rate of return instead of 12% (as implied by the discount rate)



(Scenario 2) Growth in Property value ONLY.

Property value*1.02=$1mil*1.02=$1,020,000.00

At T1, this would indeed result in a rate of return of 12% ($100k NOI + $20k increase in Property value). However, the CFA official curriculum stated quote "If the income and value for a property are expected to change over time at the same compound rate". Hence, the NOI will have to increase by 2% as well and this will result in the discount rate becoming more than 12%



(Scenario 3) To fulfil the CFA official curriculum's definition, I then tried to do a 2% increase for both.

NOI*1.02=$100k*1.02=$102k

Property value*1.02=$1mil*1.02=$1,020,000.00

Total return = $22k.

However, as the initial investment amount is 1mil exactly, I took $22k/$1mil = 2.2%

In this case, 2.2%+cap rate of 10% = discount rate of 12.2%



(Scenario 4) Growth in NOI based on Property value

2% growth in NOI in terms of Property value = 0.02*$1mil=$20k

At T1, NOI = $100k+$20k=$120k

Hence, Growth rate = $20k/$1mil = 2%; subsequently

discount rate = 2%+ cap rate of 10% = 12%

However, if Scenario 4 is indeed how we calculate growth rate, shouldn't the CFA official curriculum and Kaplan specifically mention it? Hence, I'm doubtful of scenario 4 as well.



In a nutshell, I still have no idea as to how

Cap rate + Growth Rate can be equal to Discount Rate....
fino_abama
post Dec 9 2020, 06:51 PM

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QUOTE(MotherOfGandalf @ Dec 5 2020, 10:17 PM)
Hey guys, I'm not sure where else to ask for guidance on this. So here we go  tongue.gif

CFA level 2, Alternative investments - Private real estate investment:
I've been confused about this equation here and here's where I've gotten so far.

*The growth rate is where it becomes confusing to me. I've listed down 4 scenarios here.
Cap rate = This year's rate of return = NOI/Property value

Discount rate = Investor's rate of return

Growth rate = (1)Growth in NOI? (2)Growth in Property value? (3)Growth in both NOI & Property value? (4) Growth in NOI based on Property value?
Calculation assumptions:

NOI = $100,000.00

Property value = $ 1,000,000.00

Cap rate = $100k/$1mil = 10%

Let Growth rate= 2%

So Discount rate should be 12%
(Scenario 1) Growth in NOI (quoted from Kaplan Schweser's Book 5 example)

NOI*1.02=$100k*1.02=$102k

However, at T1, this would become 10.2% rate of return instead of 12% (as implied by the discount rate)
(Scenario 2) Growth in Property value ONLY.

Property value*1.02=$1mil*1.02=$1,020,000.00

At T1, this would indeed result in a rate of return of 12% ($100k NOI + $20k increase in Property value). However, the CFA official curriculum stated quote "If the income and value for a property are expected to change over time at the same compound rate". Hence, the NOI will have to increase by 2% as well and this will result in the discount rate becoming more than 12%
(Scenario 3) To fulfil the CFA official curriculum's definition, I then tried to do a 2% increase for both.

NOI*1.02=$100k*1.02=$102k

Property value*1.02=$1mil*1.02=$1,020,000.00

Total return = $22k.

However, as the initial investment amount is 1mil exactly, I took $22k/$1mil = 2.2%

In this case, 2.2%+cap rate of 10% = discount rate of 12.2%
(Scenario 4) Growth in NOI based on Property value

2% growth in NOI in terms of Property value = 0.02*$1mil=$20k

At T1, NOI = $100k+$20k=$120k

Hence, Growth rate = $20k/$1mil = 2%; subsequently

discount rate = 2%+ cap rate of 10% = 12%

However, if Scenario 4 is indeed how we calculate growth rate, shouldn't the CFA official curriculum and Kaplan specifically mention it? Hence, I'm doubtful of scenario 4 as well.
In a nutshell, I still have no idea as to how

Cap rate + Growth Rate can be equal to Discount Rate....
*
The growth rate is for NOI and property value (same analogy for Gordon Growth Model where g is the growth rate in dividends, earnings and equity value)

Cap rate = r - g

So, r = Cap rate + g

reeve-826
post May 4 2022, 07:06 AM

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CFA exam fees claimable under Personal Tax Relief?
BrightDays
post May 28 2022, 10:09 PM

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Hello guys, Im currently pursuing Bachelor in Accounting and Finance, am I eligible to register the CFA program after my graduation?
thedannyguy
post May 29 2022, 06:10 PM

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QUOTE(BrightDays @ May 28 2022, 10:09 PM)
Hello guys, Im currently pursuing Bachelor in Accounting and Finance, am I eligible to register the CFA program after my graduation?
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def you can even register in beginning of final year of study.
BrightDays
post May 29 2022, 11:23 PM

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QUOTE(thedannyguy @ May 29 2022, 06:10 PM)
def you can even register in beginning of final year of study.
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Thanks for the clarification.
alansoong P
post Jun 27 2022, 12:32 AM

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hey guys, any good CFA tuition provider can recommend? im looking for a good quality one even it is expensive.
Pewufod
post Jun 28 2022, 09:14 AM

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QUOTE(alansoong @ Jun 27 2022, 12:32 AM)
hey guys, any good CFA tuition provider can recommend? im looking for a good quality one even it is expensive.
*
can consider NOESIS in KL

siew14
post Jun 28 2022, 01:00 PM

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QUOTE(alansoong @ Jun 27 2022, 12:32 AM)
hey guys, any good CFA tuition provider can recommend? im looking for a good quality one even it is expensive.
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QUOTE(Pewufod @ Jun 28 2022, 09:14 AM)
can consider NOESIS in KL
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Noesis is good... but their lecturer dont have field experience. For example, corporate finance subject will be taught by someone who hasnt work in corporate finance before. However, the corporate finance lecturer is good in teaching, and can make you understand the subject easier and eventually pass.

So, if you are looking just to pass the exam, then noesis is a good choice overall... But if you are looking for some insider news, hoping to know what they really do in equity research/corporate finance , then probably not a good choice. Still, you may still able to make some friend with other students who are in the field.
Penanglittlegal
post Nov 7 2022, 03:43 PM

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Dear all, my husband has some CFA books in good condition to sell at low price. Please PM me if you interested.. Thank you
ZenithSkirmisher
post Nov 18 2022, 09:13 AM

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Hello, I want to ask if I can straight away become a CFA on completing my masters at Imperial College London?

The masters I want to pursue is the financial engineering and risk management course

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