CFA exam review / EXAM STRUCTURE CBT CFA Exam Structure As of 2021, there's computer-based testing (CBT) for the level 1 CFA exam. The structure of the CBT CFA exam looks as follows: LEVEL 1 CBT CFA EXAM = SESSION 1 break (optional) SESSION 2 START = 30 minutes allotted to pledge, tutorial, and survey SESSION 1 = 2h 15 minutes = 90 multiple-choice questions break = 30 minutes (optional) SESSION 2 = 2h 15 minutes = 90 multiple-choice questions TOTAL exam day = 5.5 hours, including 4.5 hours of test time average time per question = 1.5 minute Level 1 CFA Exam Topic Weights In 2024, topic we ..read more

CFA exam review / IRR vs Cost of Capital This blog post was created as a part of the CFA exam review series to help you in your level 1 exam revision, whether done regularly or shortly before your CFA exam. How CFA Exam Questions Can Fool You Very often in questions related to capital budgeting (both in the QM and CF sections of the CFA exam) the cost of capital is given, even though you are only asked to compute the IRR. In such questions, the cost of capital is a distractor. However, in questions that require decision-making based on the IRR criterion (i.e., whether a company should under ..read more

CFA Exam: Level 1 / Ethics / GIPS Standards Reviewing Global Investment Performance Standards (GIPS) Global Investment Performance Standards (GIPS) are ethical principles for standardized calculation and presentation of investment performance set for investment companies by CFA Institute and applied voluntarily worldwide. The newest 2010 edition consists of 9 sections including both requirements and recommendations for GIPS-compliant companies to follow. This blog post was created as a part of the CFA exam review series to help you in your level 1 exam revision, whether done regularly or ..read more

CFA Exam: Level 1 / Quantitative Methods / Time Value of Money: Intro This blog post was created as a part of the CFA exam review series to help you in your level 1 exam revision, whether done regularly or shortly before your CFA exam. Time Value of Money (TVM) Explained USD 100 is worth more today than in a year or two. So USD 100 today > USD 100 in one year's time > USD 100 in two year's time, and so on... interest rate = price of money interest rate = real risk-free interest rate + inflation premium + default risk premium + liquidity premium + maturity premium Interpreting Intere ..read more

CFA Exam: Level 1 / Quantitative Methods / Time Value of Money: Annuity This blog post was created as a part of the CFA exam review series to help you in your level 1 exam revision, whether done regularly or shortly before your CFA exam. Level 1 CFA Exam: Defining Annuity Annuity = series of cash flows of the same value occurring at equal intervals Types of Annuity Ordinary annuity = cash flows occur at the end of each period Annuity due = cash flows occur at the beginning of each period Perpetuity = never-ending sequence of cash flows = cash flows occur at the end of each period indefin ..read more

CFA Exam: Level 1 / Quantitative Methods / Time Value of Money Applied This blog post was created as a part of the CFA exam review series to help you in your level 1 exam revision, whether done regularly or shortly before your CFA exam. Level 1 CFA Exam TVM Problem Solved In the previous post, we presented an algorithm to be used for time value of money (TVM) problems. Let’s recall it here. After reading a TVM question: determine what you need to calculate, establish whether you are dealing with a single payment or an annuity, check if it is an ordinary annuity or annuity due, put the cas ..read more

CFA exam: review / Approved calculators This blog post was created as a part of the CFA exam review series to help you in your level 1 exam revision, whether done regularly or shortly before your CFA exam. CFA Institute is very strict about its calculator policy. You can use only two types of financial calculators during your CFA exam: Texas Instruments BA II Plus (including BA II Plus Professional) Hewlett Packard 12C (including the HP 12C Platinum, 12C Platinum 25th anniversary edition, 12C 30th anniversary edition, and HP 12C Prestige). Using an unauthorized calculator during the exam ..read more

CFA Exam: Level 1 / Ethics / Standard III Quick Ethics Review for CFA Candidates Level 1 Ethics Summarized: Each ethical standard is devoted to a separate area of expertise. Standard III describes Duties to Clients. It has 5 sub-sections. This blog post was created as a part of the CFA exam review series to help you in your level 1 exam revision, whether done regularly or shortly before your CFA exam. Level 1 Ethics Cheat Sheet, Standard III Here's a level 1 CFA exam cheat sheet for Ethics, Standard III on duties to clients: (A) Loyalty, Prudence, and Care, (B) Fair Dealing, (C) Suitab ..read more

CFA Exam: Level 1 / Ethics / Standard II Quick Ethics Review for CFA Candidates Level 1 CFA Exam Ethics Summarized: Each ethical standard is devoted to a separate area of expertise. Standard II is about the Integrity of Capital Markets. It has 2 sub-sections. This blog post was created as a part of the CFA exam review series to help you in your level 1 exam revision, whether done regularly or shortly before your CFA exam. Level 1 Ethics Cheat Sheet, Standard II Here's a level 1 CFA exam cheat sheet for Ethics, Standard II on the integrity of capital markets: (A) Material Nonpublic Info ..read more

CFA Exam: Level 1 / Ethics The Basics of Level 1 CFA Exam Ethics Each level 1 CFA exam candidate must know the Code of Ethics and the 7 Standards of Professional Conduct. The Ethical Standards are devoted to separate areas of the investment profession. The Standards cannot, however, be used selectively. They are closely interwoven and you need to see them as a whole. The Code of Ethics provides guidelines you should follow at any time and place. This blog post was created as a part of the CFA exam review series to help you in your level 1 exam revision, whether done regularly or shortly b ..read more