We’ve all heard past L1 takers say this. Yet, when I review my Schweser materials I never know if some of these calcuations are on the test and if it’s worth my time to learn them. Some of the calculations that come to mind that I’m curious about: Indirect and Direct Method DTA and DTL Leases ROE using DuPont DDM I’d appreciate hearing the experiences of someone who has taken the exam. Please quickly elaboarte on this common saying.
I co-sign that saying. I barely used my calculator in the Dec. exam. If anything, you’ll only get 1 tax question, 1 lease question and one extended ROE question. It was very qualitative.
It’s really strange…the CFAI mocks, samples, and of course the Shweser materials are all pretty heavily mathy…but apparently in the real exam you barely ever use the calculator…
From what I hear its more about understanding how variable x affects variable y. I know that is very general in regards to the curriculum. Obviously if you know the formula front and back you have a better chance of understanding what affects, say a variable in the denominator of that formula. Also a lot of this information is building to the L2 monster. The BSAS mock exam for quant barley had any calculations, and the ones that were calculations mainly consisted of TVM and CFO applications.
That all sounds just spiffy. I’ve heard this line a thousand times too. But I’m still coming armed with my formulas, and plan to be on the top of my calculator game.
Can’t hurt to be prepared. Worst case scenario you excel on the exam and have an easier time with L2.
It’s true. HOWEVER. If you know the formula, you know what it’s for and what it looks like, you can always answer the qualitative questions as well. They’ll ask, if X changes, what happens to Y. If you know that 2x = y+4, you’ll know the answer.
That was my point…my insomnia must have caused a different explanation to come out…my bad.
Hey, you’ve only got MCQ coming at you so don’t worry about explanations yet. We’re worrying about that two forums to the right 
mcpass I doubt i’ll live that long… If I do, promise to shoot me in the face.
I certainly don’t hope to still be there by then… three years in the program is more than long enough. Also, I glance at the forum once in a while and have no reason to believe you’re in big trouble. If you really think you are it’ll only motivate you to be 100% sure.
Thanks for the vote of confidence, hopefully the people who mark the exam will agree with you. How are you feeling about L3 prep?
I feel like not showing up but I felt the same way for L1 and L2 which I obviously passed so why not be a little optimistic. High score has been 63%, the essays are killing me but the multiple choice questions are keeping me in the game. It’s all down to the last week but what would be the fun of already knowing you’re in, right?
Fair enough, I can imagine those essays have to be a gigantic pain in the a$$. Circling bubbles is one thing, actually knowing what your talking about…different ball game. I agree completely, last week is pivotal, i’m trying to cram as much as I can in the hours of the day I can stay conscious.
I didn’t hit 70% for level 1 until the Sunday before the exam and I passed comfortably. In fact, unlike Level 1 I pretty much know I had it in the bag when I walked out of the exam room. Worry enough to keep yourself motivated but don’t overdo it, it’ll only result in a black-out on exam-day.
I seem to remember using my calculator a lot (half the time) on the 2007 L1 exam. I would be prepared for any and all of those calculations. L1 is “plug and chug” exam guys. No thinking required yet. If only L3 were that way.
I agree that there weren’t that many calculations to do in Dec, however there were a lot of qualititative questions, particularly on things like ROE and du pont. And I figure the best way to learn those formulas and their effects, is to just do practise questions on them, then I’ll be prepared for the written questions on them. Can’t hurt right?
Absolutely not. And then again, you’re going to do DDM’s, Duponts, durations and correlation again in level 2… Oh and in level 3. Can’t hurt to have them down right now.
I ought to open a thread called “I am surprised at how little I know how to use my calculator”. I tried reading the manual and found out that I dont understand 50% of it. I guess I will leave those parts for level 2. :D.
Don’t get me wrong, you will definitely be using all those fancy functions on your calculator, but remember 60% of it is qualitative and 40% is using the calc. There was a ton of theory in the Dec exam