00 Practice Lab
Chapters covered: 85-92 | Focus: Diversification, position sizing, wealth machine
Use this lab after reading the chapters. Work on paper, Excel, or Screener.in before checking answers.
Visual Learning
Practical Examples (Indian Market)
Example A - Apply the Core Formula
Pick any NSE-listed company from this part's topic (Allocation, sizing, rebalancing, behavioral biases). 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
| Strong Signal | Weak Signal | ||
|---|---|---|---|
| Trend | Improving 3-5 years | Declining 2+ years | |
| vs Peers | Top quartile in sector | Bottom quartile | |
| Cash vs Profit | FCF supports profit | FCF much less than PAT | |
| Management | Transparent, low pledge | Opaque, high pledge | ### Example C - Decision Drill |
Scenario: You have Rs. 2 lakh to deploy. Using only concepts from Part 12, 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.
- Thesis - 3 sentences: why business is good or bad
- Numbers - 5 metrics from this part
- Verdict - Buy / Hold / Avoid / Watchlist
- 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 85 Asset Allocation Pro: Asset Allocation Pro — what is the core message of this chapter in one sentence?
- Ch 86 Diversification: Diversification — what is the core message of this chapter in one sentence?
- Ch 87 Position Sizing: Position Sizing — what is the core message of this chapter in one sentence?
- Ch 88 Risk Management Pro: Risk Management Pro — what is the core message of this chapter in one sentence?
- Ch 89 Portfolio Rebalancing: Portfolio Rebalancing — what is the core message of this chapter in one sentence?
- Ch 90 Behavioral Biases: Behavioral Biases — what is the core message of this chapter in one sentence?
- Ch 91 Long-Term Wealth Machine: Long-Term Wealth Machine — what is the core message of this chapter in one sentence?
- Ch 92 Portfolio Building: Portfolio Building — what is the core message of this chapter in one sentence?
Answer Key (Lab)
How to self-check chapter drills
Strong answers: (1) cite formula + numbers, (2) name NSE/BSE source, (3) mention one red flag. Open each chapter's Answer Key section for model answers — do not skip showing your working.
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 12 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 12 (85-92).
Chapter FAQ Quick Index
| Ch | Chapter | Top FAQ Question | |:--:|---------|------------------| | 85 | Asset Allocation Pro — Strategic Mix and Rebala… | Asset Allocation Pro — what is the second check when evaluating this concept? | | 86 | Diversification — Correlation and Concentration | Diversification — what is the second check when evaluating this concept? | | 87 | Position Sizing — Kelly, Caps, and Conviction | Position Sizing — what is the second check when evaluating this concept? | | 88 | Risk Management Pro — Drawdown and Sizing | Risk Management Pro — what is the second check when evaluating this concept? | | 89 | Portfolio Rebalancing — Mechanical Discipline | Portfolio Rebalancing — what is the second check when evaluating this concept? | | 90 | Behavioral Biases — Portfolio Decision Traps | Behavioral Biases — what is the second check when evaluating this concept? | | 91 | Long-Term Wealth Machine — Compounding and Fina… | Long-Term Wealth Machine — what is the second check when evaluating this concept? | | 92 | Portfolio Building — From Allocation to Exit St… | Portfolio Building — what is the second check when evaluating this concept? |
FAQ Drill — Test Yourself
Answer in 2–3 complete sentences in English, then open the chapter FAQ link to check.
- Ch 85: Asset Allocation Pro — what is the second check when evaluating this concept?
- Ch 86: Diversification — what is the second check when evaluating this concept?
- Ch 87: Position Sizing — what is the second check when evaluating this concept?
- Ch 88: Risk Management Pro — what is the second check when evaluating this concept?
- Ch 89: Portfolio Rebalancing — what is the second check when evaluating this concept?
- Ch 90: Behavioral Biases — what is the second check when evaluating this concept?
- Ch 91: Long-Term Wealth Machine — what is the second check when evaluating this concept?
- Ch 92: Portfolio Building — what is the second check when evaluating this concept?
FAQ Answer Key (Lab)
Drill guidance — how to self-check
Strong answers: (1) cite a number or formula, (2) name one NSE/BSE example, (3) mention one red flag. Weak answers: vague definitions only. Re-do drills for chapters you missed.
Go Deeper
| Resource | Link |
|---|---|
| Part chapters | _README.md |
| Formulas | CHEATSHEET.md |
| Action lists | CHECKLIST.md |
| Stock analyzer | tools/stock-analyzer |
Disclaimer: Educational content only. Not investment advice.