Level I

Some Counter-intuitive Advice on the last two days' prep

Congratulations to all the L1 takers - you’re in the home stretch.  I wish you all the luck you need on the exam on Sturday

I thought I’d give you a bit of unusual advice for your last two days’ prep - GET A GOOD NIGHT”S SLEEP TONIGHT!

I’ve been a college professor for almost 20 years, and while I don’t personally conduct research on learning processes and memory (I’m Finance, not Psychology), I folllow it pretty closely, since it’s a big factor in how students perform.  

Degree of financial leverage

do you include fixed financing cost in calculating DOL or only use fixed operating costs? 

Inventory to Sales - Lagging or Leading?

Is the Inventory to Sales Inventory Ratio a lagging or leading indicator. Everything I’ve read indicates that it is a lagging indicator. But a Schweser question said it typically begins in increase during the late stages of an expansion (which makes me think it could be leading).

Thank you!

Final Days

Hope everyone’s last week is going well!

So I’ve been reviewing all mock exam notes (missed problems) last couple days and rewriting formulas over and over so I can remember them. Is everyone else on the same boat at this point? What has your final week schedule been like? I haven’t taken any time off work but this week but the long weekend this past week got me through all the Mocks on time. 

Thanks and good luck to everyone on Saturday! 

Floors for floating rate securities

How are floors on floating rate securities considered embedded options on bonds? There is no option to make the bond have a floor (it is already a component of the bond itself, not an option granted to bondholders).  

CFAI Mock Test

Hi guys, I’ve done a few mock test from the CFAI website and found that many of the questions are repeated.

My question is, is it useful to keep drilling the CFAI mock questions or should I try questions from other providers?

I am just worried that I am not exposed to wider range of question bank, since I keep getting the same questions.

The big day is coming real soon and I hope to get some input from here. Thank you and all the best everyone!

Economics Question


I ran into this question using Kaplan practice exams and I’m not quite sure I understand the explanation. Can someone please help me out on this and paraphase? 

An economy is in full-employment equilibrium. If the government unexpectedly decreases the tax rate, in the short run the economy is most likely to experience:

A. An Increase in employment

B. A decrease in price level

C. No change in employment and an increase in price level


Subscribe toLevel I