Exam FM General Cash Flows, Portfolios, and Asset Liability Management practice problems

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General Cash Flows, Portfolios, and Asset Liability Management covers yield equations, dollar- and time-weighted returns, spot and forward rates, duration, convexity, immunization, and matching assets to liabilities. It asks candidates to connect a cash-flow model with the sensitivity of its present value.

Build the dated cash-flow vector first. Solve yields with a bracketed equation, and calculate portfolio duration from present-value weights under one rate convention. BA II Plus cash-flow and IRR worksheets can reproduce some values, while duration and immunization conditions still require an explicit written model.

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Exam FM General Cash Flows, Portfolios, and Asset Liability Management practice problems and solutions

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