I purchased Elan 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, on page 283 of curriculum (volume 1), 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?
By the time you finish reading all the material, you’ll get hold of 85% of the formulae without having to memorize them. The other 15% needs some attention and time.
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 e.g. page 299. 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.