create CFA study PLAN

Master of Formulas

CFA® Exam: Time Value of Money, Annuity

TVM problems in the level 1 CFA exam: ordinary annuity, annuity due, perpetuity? Annuity = a series of cash flows of the same value at equal intervals.

Using Spot Rates & Forward Rates In Your CFA® Exam

In your level 1 CFA exam, you have to know different bond valuation methods. Learn how to use spot rates and forward rates to value bonds.

Choosing Between Money-Weighted Return & Time-Weighted Return In Your CFA® Exam

Learn how to compute rates of return on an investment in your level 1 CFA exam. There are 2 basic measures: the money-weighted rate of return and the time-weighted rate of return.

Level 1 CFA® Exam: 4 Methods of Bond Valuation

[CFA exam] 4 bond valuation methods. To value a bond, use: market discount rate, spot rates & forward rates, binomial interest rate tree, matrix pricing.

Level 1 CFA® Exam: NPV vs IRR. Which is Better?

In the case of mutually exclusive projects, if the NPV and the IRR suggest two different investment projects, we should choose the project with a higher positive NPV.

Level 1 CFA® Exam: Geometric Mean Return

If a company pays no dividends and you have to compute the geometric mean return over multiple periods, just divide the last price by the first price.

Level 1 CFA® Exam: Profitability Index in 60 Seconds

CFA EXAM: Profitability index (PI) is the ratio of the present value of future cash inflows to the initial investment. If a project has a PI greater than 1, you should invest in the project.

Level 1 CFA® Exam: Measures of Location (Computing Percentile)

Level 1 CFA Exam Revision: Get a useful piece of advice related to measures of location, recall an important formula, and take a practical tip.

Discounted Payback Period vs Payback Period: Pros & Cons

Both payback period (PP) and discounted payback period (DPP) measure the number of years necessary to recover funds invested in a project. In your level 1 CFA® exam, remember that DPP takes time value of money into account.

Cash Conversion Cycle Explained in 60 Seconds

CFA EXAM: The cash conversion cycle measures the time from paying suppliers for materials to collecting cash from the sale of goods produced from these materials.

How to Use Matrix Pricing in Your Level 1 CFA® Exam?

Learn how to apply matrix pricing in your level 1 CFA exam to compute the price of an illiquid bond or the required yield spread for a bond to be issued.

Money Market Yields for Level 1 CFA® Exam Candidates

Level 1 CFA exam: Learn about various money market yields: bank discount yield, holding period yield, effective annual yield, money market yield.

Level 1 CFA® Exam: Bayes' Formula Explained

Level 1 CFA Exam: Having trouble with Bayes' formula? Here's an alternative way of solving this kind of problems in your CFA exam. No formulas! Just logical thinking!

Blog - Master of Formulas

Master of Formulas

11 months 2 weeks ago

CFA® Exam: Time Value of Money, Annuity

TVM problems in the level 1 CFA exam: ordinary annuity, annuity due, perpetuity? Annuity = a series of cash flows of the same value at equal intervals.

	11 months 3 weeks ago	Level 1 CFA® Exam: Measures of Location (Computing Percentile)
	11 months 3 weeks ago	Level 1 CFA® Exam: Geometric Mean Return
	11 months 3 weeks ago	Discounted Payback Period vs Payback Period: Pros & Cons
	11 months 3 weeks ago	Level 1 CFA® Exam: Profitability Index in 60 Seconds
	11 months 3 weeks ago	Level 1 CFA® Exam: NPV vs IRR. Which is Better?
	11 months 3 weeks ago	Cash Conversion Cycle Explained in 60 Seconds
	11 months 3 weeks ago	How to Use Matrix Pricing in Your Level 1 CFA® Exam?
	11 months 3 weeks ago	Level 1 CFA® Exam: 4 Methods of Bond Valuation
	11 months 3 weeks ago	Choosing Between Money-Weighted Return & Time-Weighted Return In Your CFA® Exam
	11 months 3 weeks ago	Money Market Yields for Level 1 CFA® Exam Candidates
	11 months 3 weeks ago	Using Spot Rates & Forward Rates In Your CFA® Exam
	11 months 3 weeks ago	Level 1 CFA® Exam: Bayes' Formula Explained

Go up