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Level I

Why inventory to sales ratio is a laggin indicator?


While I was studying business cycles it came to my mind that the inventory to sales ratio represent expectations about economic activity. For example, when an economy is in a recessionary trough inventories may become depleted more quickly once sales growth begins to anticipate the expansion, meaning that the ratio will be lower and that a recovery for the economy is coming. Wouldn’t this be a leading indicator instead of a lagging one?

Please correct me if I’m wrong or I misunderstanding the concept,

Thanks in advance and best regards,

CFAI EOC: Before final review?

Hey guys.

I’m studying with the SchewserNotes and doing all of the EOC after every reading. I haven’t touched the EOC questions from the CFAI, but I would like to know if it is a good strategy to save those questions for the last month of review or should I be doing them in conjunction with my study now?

Thanks in advance.



A firm has a capital budget of $100 which must be spent on one of two projects, each requiring a present outlay of $100. Project A yields a return of $120 after one year, whereas Project B yields $201.14 after 5 years. Calculate:

the NPV of each project using a discount rate of 10%;

 the IRR of each project.

What are the project rankings on the basis of these two investment decision rules? Suppose that you are told that the firm’s reinvestment rate is 12%, which project should the firm choose?

any intern chance for those not fresh graduate??

Hey there, I have too many years after graduation, in my early 30s now and lookiing for any intern opportunities that dont count my gap years…i just took cfa level 2 prob 70% chance to pass it. do you guys have any idea if such intern programs exist?? I’d like to pay for it as it can make my resume look not that blank. I got degree from a public university ranking around 50 sth. Any comment is welcome and thank you.


Suppose that an investment advisor offers you to invest your hard earned money in a project that has the following cash flows (the subscript denotes the time index corresponding to years from today so that subscript 2, for example, denotes the point in time two years from now).

     C1=200, C2= -250, C3= 300

What is the maximum price that you should be willing to pay for this project knowing that for an alternative project of the same risk you could expect an annual return of 10%?

Bond yield

Government bonds are instruments that pay nominal amount money (100 euros) at a certain point in time in the future (the time to maturity). About these bonds the following is known:

  • A bond maturing one year from now costs today 95 euros.
  • A bond maturing two years from costs today 92 euros.
  • A bond maturing 3 years from now costs today 89 euros.

Central Limit Theorem

Below is give an excerpt from Central Limit Theorem of CFA level 1 books “