The purpose of these Advanced financial management notes is to equip the candidate or student with knowledge and skills to enable him or her to implement regulations and policy directives governing advanced public financial management issues,apply advanced financial management methods and techniques to analyze and manage public debt, public investments among other areas in the public finance sector.

Finance is the art and science of managing money. It is concerned with the processes, institutions, markets and instruments involved in the generation and transfer of money among individuals, businesses, and governments.

Finance can be defined as the art and science of managing money. Virtually, all individuals and organizations earn or raise money and spend or invest money. Finance is concerned with the process, institutions, markets and instruments involved in the transfer of money among individuals, business and governments.

As part of long range planning process decision is taken on the program, the organization will undertake and the appropriate resources that will be allocated to each program over the next few years.

Course aims; Help students build onto the principles and concepts acquired in Financial Management, Advanced Financial Management and Research Methodology to evaluate emerging and new issues in Financial Management and corporate finance and financial innovations.

Download full revision kit for Advanced Financial Management Paper. This kit has a number questions that will boost your understanding and knowledge in matters AFM.

This documents contains past papers from the year 2002 to 2019 for Advanced Financial Management . Get equipped with possible question in the next paper of Advanced Financial Management .

QUESTION 1a Applications of capital asset pricing model (CAMP) Pricing of securities CAPM is used to determine whether financial assets are over-valued, under-valued or correctly priced by the market forces. This is the basis upon which to decide whether to buy or sell securities at prevailing market forces. Investment decisions CAPM is applied to determine the discounting rate used to evaluate capital investments. It is also used to determine the risk adjusted discounting rate. Cost of capital CAPM is used to determine the cost of capital, that is, the cost of equity capital, debt capital and the firm’s overall cost of capital. Evaluate portfolios CAPM is used to evaluate portfolios with a view to establish whether portfolios are profitable or unprofitable. It is thus applied to evaluate whether to change the composition of a portfolio or not. Efficiency of portfolio CAPM is used to determine which portfolios are super-efficient, inefficient or efficient. Evaluate performance of portfolios CAPM is applied to evaluate performance of portfolios. The Trenors measure of portfolio performance is based on the background of CAPM