2024 CFA Level I Exam: CFA Discussion Topic: Your opinion on formulae in CFA curriculum

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Topic: Your opinion on formulae in CFA curriculum

Author	Topic: Your opinion on formulae in CFA curriculum
dadya @2015-03-22 16:29:48	I purchased AnalystNotes material, and I also tried to review Reading 5 from CFA curriculum just to make sure I wasn't missing anything. I found that CFA readings do not talk about any calculator specific key presses (which is expected, anyway). My question is - I can get the same answers that CFA Readings are showing by plugging in those numbers into my BA II+ calculator. Did any of you (especially who took level 1 exam) think it was important to make sure those formulae listed in the curriculum must be mastered? I am kind of confused because I did not think I need to memorize them as long as I understand the concept and can plug those numbers into my calculator and get the same result. For example, the formula to calculate the growth rate is listed as g = (FVn/PV)^1/N - 1 If I plug in the numbers from that example (#17) PV=-$8436, FV=$8445,N=4,PMT=0, I get the same growth rate of 0.0267 that the curriculum shows using the above formula. I am curious as I am only at level 1 currently. If this is going to be the pattern throughout, then how are you managing - are you learning both formulae listed in the curriculum, as well as the calculator operations? I did not think the concepts were tied to the formulae so was thinking that if I know the concepts & calculator operations, I should be okay. But if it is not, I would like to change the direction now before it is too late. Also, if I am missing something, I thought I should know now. Your thoughts?
Akira @2015-03-30 16:00:58	I think the questions that I can solve using my calc, I will solve using it only. Definitely faster. CFA material provides key strokes in the solutions to the end of the chapter questions. But, I would also like to memorize the formulas... Just in case there is a slight twist in the question and I do not know how to use my calc for it.

Author

Topic: Your opinion on formulae in CFA curriculum

dadya
@2015-03-22 16:29:48

I purchased AnalystNotes material, and I also tried to review Reading 5 from CFA curriculum just to make sure I wasn't missing anything. I found that CFA readings do not talk about any calculator specific key presses (which is expected, anyway).

My question is - I can get the same answers that CFA Readings are showing by plugging in those numbers into my BA II+ calculator. Did any of you (especially who took level 1 exam) think it was important to make sure those formulae listed in the curriculum must be mastered? I am kind of confused because I did not think I need to memorize them as long as I understand the concept and can plug those numbers into my calculator and get the same result.

For example, the formula to calculate the growth rate is listed as
g = (FVn/PV)^1/N - 1

If I plug in the numbers from that example (#17) PV=-$8436, FV=$8445,N=4,PMT=0, I get the same growth rate of 0.0267 that the curriculum shows using the above formula.

I am curious as I am only at level 1 currently. If this is going to be the pattern throughout, then how are you managing - are you learning both formulae listed in the curriculum, as well as the calculator operations? I did not think the concepts were tied to the formulae so was thinking that if I know the concepts & calculator operations, I should be okay. But if it is not, I would like to change the direction now before it is too late. Also, if I am missing something, I thought I should know now.

Your thoughts?

Akira
@2015-03-30 16:00:58

I think the questions that I can solve using my calc, I will solve using it only. Definitely faster. CFA material provides key strokes in the solutions to the end of the chapter questions. But, I would also like to memorize the formulas... Just in case there is a slight twist in the question and I do not know how to use my calc for it.

CFA Discussion Topic: Your opinion on formulae in CFA curriculum

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CFA Discussion Topic: Your opinion on formulae in CFA curriculum

Martin Rockenfeldt