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.
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Post date: Saturday, November 4, 2023 - 09:00
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Post date: Saturday, November 4, 2023 - 08:55
Corporate governance is growing in importance as the governance factor is being joined by both environmental and social concerns (ESG) now tested in your level 1 CFA exam.
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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.
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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.
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Post date: Friday, November 3, 2023 - 08:50
The asset beta is the beta of a company on the assumption that the company uses only equity financing. The equity beta takes into account different levels of the company's debt.
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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.
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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 money-weighted rate of return and the time-weighted rate of return.
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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!
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Post date: Thursday, November 2, 2023 - 08:50
Level 1 CFA Exam: Learn how to compute standard deviation using the DATA and STAT worksheets in your approved CFA exam calculator, TI BA Plus Pro.
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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.
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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.
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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.
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Post date: Thursday, November 2, 2023 - 07:10
Level 1 CFA exam cheat sheets on the basics of the balance sheet, income statement, cash flow statement, and statement of changes in equity.
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Post date: Thursday, November 2, 2023 - 07:10
Level 1 CFA Exam Revision: U.S. GAAP are more strict than IFRS with respect to classifying transactions into different cash flows. More details >>
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Post date: Thursday, November 2, 2023 - 07:08
Level 1 CFA Exam: Learn about the Fixed Income topic and its many relations. Key terms: bond, price, interest rate, coupon rate, YTM, duration, etc.
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