KASNEB CIFA Intermediate study guide
KASNEB CIFA Intermediate · Work through your exam, one topic at a time.
CIFA - Certified Investment and Financial Analysts - is a KASNEB qualification described by the Board as designed for persons who aspire to excel as investment, securities and financial analysts, portfolio managers, investment bankers, fund managers or consultants in national and global financial markets. KASNEB states that the programme equips candidates with the skills, values and knowledge to thrive in today's dynamic financial landscape, so the emphasis is on applied analytical work rather than pure theory. The KASNEB CIFA Intermediate study guide has 5 sections and about 1,618 words.
01Financial Markets and Instruments
Financial markets channel savings from surplus units to deficit units. Start every answer by separating primary markets (new securities issued; the issuer receives cash) from secondary markets (investors trade existing securities among themselves; the issuer receives nothing, but the market supplies liquidity and price discovery).
356 words, about 2 min02Financial Statement and Security Analysis
Questions test whether you can select the right ratio and interpret it. Group them: liquidity (current ratio, quick ratio, cash ratio); profitability (gross margin, net margin, ROA, ROE); leverage (debt-to-equity, gearing, interest cover); efficiency (inventory turnover, receivables collection period, asset turnover); and valuation (EPS, P/E, dividend yield, price-to-book, dividend cover).
316 words, about 2 min03Portfolio Management
Portfolio expected return is the weighted average of individual expected returns. Portfolio risk is not a weighted average of standard deviations - it depends on the correlation between assets.
323 words, about 2 min04Financial Risk Management
Be able to name and illustrate the main categories: market risk (interest rate, currency, equity, commodity), credit risk (default and settlement), liquidity risk (funding and market liquidity), operational risk (people, processes, systems, external events), and strategic, legal and reputational risk . Enterprise risk management links these to a risk register with owners, likelihood, impact and mitigating controls.
312 words, about 2 min05Ethics, Governance and Professional Standards
Professional codes rest on integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Questions usually present a dilemma and ask what a member should do.
311 words, about 2 min