Day 2 - Build the CFA Level I Study System Before You Study
Harder
DAy 2 is about understanding more about the exam. I guess
you have already registered for the August Exam if you are looking at this.
Work Smarter - And Harder
CFA is about both working smart and hard within a limited
timeline. Please comment with your daily study timeline.
Before starting preparation, set out a time for preparation and review
- Mark the exact exam date and count backwards
- Choose a fixed time slot and try to stick to it, and a longer slot for weekends
- Keep study material, notes, formula sheets, flashcards, prep notebook, calculator handy
Preparation
Today’s topic is Quantitative Methods, starting with time
value of money.
Focus on:
- Present
value and future value
- Compounding
and discounting
- Annuities
and perpetuities
- Nominal
versus effective annual rates
- Basic
calculator keystrokes for TVM problems
Do not rush this section. Time value of money appears across
finance topics, so weak calculator habits here will slow you down later.
Practice target
Complete 25 Quantitative Methods questions today.
Use this split:
- 10
questions on present value and future value
- 5
questions on annuities
- 5
questions on interest rates and compounding
- 5
mixed questions without looking at notes first
Ethics - Complete an Ethics block.
After each mistake, write it in your error log under one of
four labels:
- Concept
gap: I did not understand the idea.
- Formula
gap: I knew the concept but forgot the formula.
- Calculator
error: I entered the values incorrectly.
- Reading
error: I missed what the question was asking.
Review checkpoint - Very Important
At the end of the session, answer these five questions:
- Did
I complete the 25 questions?
- What
was my accuracy?
- Which
type of mistake appeared most often?
- Which
formula or calculator step needs repetition tomorrow?
- Did I do at least 5 Ethics question and finish a block?
- What
is my first study block for Day 3?
