CFA® Exam Review: Master of Formulas
Post date: Sunday, November 5, 2023  08:55
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.

Post date: Saturday, November 4, 2023  09:00
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.

Post date: Friday, November 3, 2023  09:08
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.

Post date: Friday, November 3, 2023  08:55
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.

Post date: Friday, November 3, 2023  08:45
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.

Post date: Thursday, November 2, 2023  10:37
Learn how to compute rates of return on an investment in your level 1 CFA exam. There are 2 basic measures: the moneyweighted rate of return and the timeweighted rate of return.

Post date: Thursday, November 2, 2023  08:55
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!

Post date: Thursday, November 2, 2023  08:45
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.

Post date: Thursday, November 2, 2023  07:22
Level 1 CFA exam: Learn about various money market yields: bank discount yield, holding period yield, effective annual yield, money market yield.

Post date: Thursday, November 2, 2023  07:15
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.

Post date: Thursday, November 2, 2023  07:05
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.

Post date: Thursday, November 2, 2023  07:01
[CFA exam] 4 bond valuation methods. To value a bond, use: market discount rate, spot rates & forward rates, binomial interest rate tree, matrix pricing.

Post date: Thursday, November 2, 2023  06:55
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.
