Reviewed by: R. Saikiran. This guide is written for candidates who want a quick but practical revision note before attempting mock tests.
Valuation Approaches
Valuation commonly uses market approach, income approach, and cost approach depending on the asset and available information.
Financial Assets
Securities valuation can involve DCF, comparable multiples, yield-based methods, option-based methods, and scenario analysis.
Exam Tip
Match the valuation method to the asset type, purpose, availability of data, and reliability of assumptions.
Key Terms to Remember
- securities valuation
- income approach
- market approach
- cost approach
- financial assets
How to Practise
After reading this guide, attempt the related mock-test sets and review the explanations for skipped or incorrect questions. The goal is not memorising one answer, but recognising the concept in new scenarios.
Common Mistakes
Candidates often rush through familiar terms and miss the exact condition in the question. Slow down when the question includes time period, client profile, product type, regulatory role, risk level, or calculation data.
Revision Checklist
- Understand the core definition.
- Know where the topic appears in the exam category.
- Practise at least one related mock set.
- Review every wrong and skipped answer.
- Verify current rules through official sources where regulation is involved.