Monday, 11 April 2016

Top 5 Broad Concepts from CFA Level 1

1 . Time Value of Money – when you start preparing for CFA Level 1, it is more than likely that you are aware of the Time Value of Money Concepts. So what else is new? Don’t get persuaded by the easy sound to it. You need to understand the various kinds of yields and which is to be applied where in these calculations. And do note and remember these yields well. You are going to need them over and over again. The other important concepts you need to know among others are the FV and PV of Perpetuities.

2.   Financial Ratios – Know our ratios well. You need to spend some time on it. By the end of the Financial Reporting and Analysis Chapters you need to know your ratios from one another You will need them over and over again. The liquidity ratios, the operating ratios, the profitability ratios, the ROI ratios et al. And don’t forget the DuPont Analysis and how to dissect it

3.      Cost of Capital – Once you know your cost of capital, WACC in various forms, you have your Capital budgeting more or less nailed. That is just one step away from understanding Corporate Finance. In hindsight it actually all looks very simple. But don’t be complacent. It’s a beautiful mark fetching topic where a little bit of effort in understanding will score well.

4.      CAPM – or Capital Asset Pricing Model is the concept to know in Portfolio Management. To know the CAPm be aware of the Capital Market Line and the Security Market Line. Don’t forget to distinguish between the Required Return of Capital and the Expected Return.

5.      Ethics – It is really Simple in Ethics. Everytime you are in doubt take the tougher decision. There’s nothing you can take for granted in Ethics. Stick to the narrow and straight path and you get it right 8/10 times. But know the standards well. It looks difficult – but is not really so. The best thing is that the practice problems are enough and have covered it all. Its really an easy way to take your mind off formulas and get that >70

Thursday, 20 February 2014

CFA Level 2 2014 Study Session Outline and LOS pdf

Here is a link to the comprehensive study session outlines from the CFA curriculum. See the study session outline details, weightage for every topic, number of study sessions in each of the ten CFA topics, the readings or chapters in each Study Session and plan accordingly. The Level 2 curriculum for 2014 is slightly changed from the Level 2 curriculum for 2013. Download the Study sessions and LOS in pdf.

Wednesday, 31 July 2013

CFA | CFA Level 2 Curriculum Change 2013 - 2014

The CFAI keeps changing the curriculum at regular intervals to keep the material uptodate. Thats why it is such a coveted course and the people who clear the exams so well respected.

Here is the CFA curriculum change for 2013 - 2014 as found at the Elan Guides website.

Go to the link to get the CFA LOS change for 2013 - 2014 for level 1, level 2 and level 3.

Overconfidence Killed...Level 2

How I hate the regret letters sent by the CFA Institute by now! July 23rd came and went with no good news. Even though 43% candidates cleared the Level 2 - I was unfortunately not one of them.

I will tell you how they cleared the Level. they studied. Most probably for 300 hours if not more. How did I not clear. By not studying enough. Simple. Since I was in Band 9 last time, i was under the impression that if I just did the questions at the end of the CFAI book - it would suffice. So i put in a month of effort - started from the back of most topics - ie the questions and learned as i did the answers. In total 100 to 150 hours of effort.

The result of Level 2 - Score Band 6.


So now you have a complete report (even if a bit incomplete;) on how not to clear at the earliest.

My next post will be my daily debate on whether I should quit or try again.

I have just about got over the numbness of not clearing the level 2.

Ouch again!

Friday, 19 April 2013

CFA Level 2 in 40 Days

Right - I am back to a familiar place!

Just 40 days left and I havent finished even one reading.

So this is how it wll go from t0day. I have 20 Readings left [excluding 10 from Ethics - which makes it 30 Readings :-(...] and around 10 days before revision time starts.

Revision is non - negotiable from 1st May - since I havent even started on my EOCs.

So the schedule is 2 Readings a day till end of April. Revision and Ethics have to work simultaneously.

Topics Left

Corporate Finance (Readings 25.29) (SS - 8.9)
Alternative Investments (Readings 38-41) (SS - 13)
Fixed Income (Readings 42-47) (SS - 14.15)
Derivatives (Readings 48-53) (SS - 16.17)
Portfolio Management (Readings 54-56) (SS - 18)
and of course the most important of them all
Ethical and Professional Standards  (Readings 1.10) (SS - 1.2)

Whew! What have I been studying so far??? Seems all left for last minute prep!

Friday, 15 March 2013

LOS Changes CFA Level 1

Here is a nicely compiled LOS Changes for CFA Level 1 from 2012 to 2013. 2013 CFA Level 1 has 67 Readings.

The changes occur mostly in Alternative Investments, Fixed Income, Derivatives and Economics.
Most other topics have had some minor changes.

Only 78 days to go for the June CFA exam. Happy reading!

Monday, 11 February 2013

Schweser iPhone App / Android App for CFA Free

I just came across a great mobile app from Schweser - all for free! Schweser has the complete ethics content for free with more than 500 questions for self testing. It is available in the iphone appstore or as an android app.

This is the link to Schweser Free Ethics App