Date post: | 14-Jul-2015 |
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Economy & Finance |
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Finance: Theory vs Practice
Asif Khan, CFA
Deputy Head of Research
BRAC EPL Stock Brokerage
Venue: NSU
Date: March 21st, 2015
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“Theory is when you know
everything but nothing works.
Practice is when everything
works but no one knows why.
In our lab, theory and practice
are combined: nothing works
and no one knows why.”
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Are they at conflict?
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In Finance, theory is important
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In Finance, theory is important
Classrooms are like windows
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Flight to corporate world
FINANCIALNON
FINANCIAL
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Non Financial - Sectors
Unilever
Marico
Nestle
GSK
FMCG Industrials Services
Lafarge
Heidelberg
BSRM
Grameenphone
Robi
Accenture
Others
Square Pharma
Viyellatex
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Non Financial - Roles
Finance and Accounts Strategy and Planning
Treasury Business Analyst
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Financial - Sectors
Banks NBFIs
Insurance
BrokersInvestment
Banks
AMCCredit Rating
Agencies
CONTRACTUAL INSTITUTION
DEPOSITORY INSTITUTION
INVESTMENT INSTITUTION
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Financial - Roles
Front Office Back OfficeMid Office
RM
Sales
Trading
Advisory
M&A
Equity Research
Risk
Treasury
IT
Finance
Admin
HR
Operations
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Flight back to theoretical world
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Basics
Topics
Financial Statement Analysis
Interest Rate
Risk and Return
Time Value of Money
Who needs it?
Everybody including non-finance major students
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Corporate Finance
Topics
Cost of Capital
NPV, IRR, Payback etc
Capital Budgeting
Capital Structure
Dividends
Leasing
Mergers and Acquisitions
Who needs it?
Non-Financial sector (strategy, business analyst)
Investment Institutions
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Investment Analysis
Topics
Financial Instruments
Portfolio Theory and CAPM
Term Structure of Interest Rates
Duration and Convexity - Fixed Income
Bond and Stock Valuation
Who needs it?
Investment Institutions
Fund managers for banks, NBFIs and Insurance
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Risk Management
Topics
Uncertainty and Risk
Mathematics of risk
Hedging, Derivatives and Insurance
Credit Risk Management
Who needs it?
Credit Risk Analysts (Banks and NBFIs)
Treasury (Banks, NBFIs and non-financial sectors)
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Bank Management
Topics
Bank Capital Structure and Regulation
Analyzing bank performance
Recent trends in Banking
Bank failures
Who needs it?
Bankers
Credit and Equity Analysts
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