00 Practice Lab

Chapters covered: 01-05 | Focus: SIP, market cap, EV, Rule of 72, real returns

Use this lab after reading the chapters. Work on paper, Excel, or Screener.in before checking answers.

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Visual Learning

Practical Examples (Indian Market)

Example A - Apply the Core Formula

Pick any NSE-listed company from this part's topic (Wealth, psychology, compounding, shares, market cap). Pull latest annual report or Screener data and compute the main ratio/formula from each chapter. Build a one-page cheat sheet.

Example B - Good vs Bad Comparison

Scenario: You have Rs. 2 lakh to deploy. Using only concepts from Part 01, would you buy at full size, use 3 tranches, or wait in cash? Write 3 bullets defending your choice.

Mini Case Study

Company: Choose one Indian listed firm relevant to this part.

1. Thesis - 3 sentences: why business is good or bad
2. Numbers - 5 metrics from this part
3. Verdict - Buy / Hold / Avoid / Watchlist
4. Invalidation - 2 events that break your thesis

Practice Questions — Chapter Drills

Complete after reading each chapter's Practice Questions. Open the chapter Answer Key to verify.

• Ch 01 The Science of Wealth Creation: Bank interest 5%, inflation 7% — Real Return?
• Ch 02 Investment Psychology: Mr. Market metaphor — panic vs opportunity?
• Ch 03 The Power of Compounding: Rs. 5,000/month SIP 15 years at 12% — approximate corpus?
• Ch 04 What is a share?: Primary vs secondary market — company When does it get paid?
• Ch 05 Market Cap andEnterprise Value: Market Cap ₹10,000 Cr, Debt ₹2,000 Cr, Cash ₹500 Cr — EV?

Answer Key (Lab)

Self-Assessment Checklist

• Completed at least 3 calculations on real Indian companies
• Studied the diagram above without notes
• Can explain this part in 5 minutes to a friend
• Found 1 red flag in the wild using these tools
• Completed FAQ Drill (3+ answers without peeking)
• Updated investment journal with one entry

FAQ {#faq}

Use this section after reading chapter FAQs. Try answering without looking, then verify against the linked chapter.

Lab Workflow

Q: Practice lab — before or after reading chapters?

A: After — read the chapter + chapter FAQ first, try exercises without the answer key, then verify here.

Q: Is Screener.in enough, or is the annual report required?

A: For lab drills, Screener/Trendlyne is the start point; final verification must come from the consolidated annual report — CFA discipline.

Q: How do I score the Part 01 FAQ Drill?

A: 6+ accurate out of 8 drills = ready for the next part; 4–5 = re-read weak chapters; <4 = repeat the lab + FAQ index.

Q: What is the difference between Chapter FAQ and Lab FAQ?

A: Chapter FAQ = concept clarity (5 Q per chapter); Lab FAQ = synthesis across Part 01 (01-05).

Chapter FAQ Quick Index

| Ch | Chapter | Top FAQ Question | |:--:|---------|------------------| | 01 | The Science of Wealth — How Money Works and Why… | What is the best age to start a SIP? | | 02 | Investment Psychology — Behavioural Biases and … | Do institutional investors (FII/DII) trade daily like retail traders? | | 03 | The Power of Compounding — SIP, Time Horizon, a… | What happens when you hold a bad business and expect compounding? | | 04 | What Is a Share? — Ownership, Markets, and Shar… | When I buy a share on the secondary market, does the company receive money? | | 05 | Market Cap and Enterprise Value — Size vs Total… | Why is small-cap not automatically a multibagger? |

FAQ Drill — Test Yourself

Answer in 2–3 complete sentences in English, then open the chapter FAQ link to check.

• Ch 01: What is the best age to start a SIP?
• Ch 02: Do institutional investors (FII/DII) trade daily like retail traders?
• Ch 03: What happens when you hold a bad business and expect compounding?
• Ch 04: When I buy a share on the secondary market, does the company receive money?
• Ch 05: Why is small-cap not automatically a multibagger?

FAQ Answer Key (Lab)

Go Deeper

Disclaimer: Educational content only. Not investment advice.