Hey guys,
Tomorrow I will be focusing on reading ethics and writing out formulas/key tables etc. What do you think are absolute must knows?
Obvious ones I can think of are:
Anova tables
Current/temporal adjustments
pension formulas
intercorporate investments.
FCFE/FCFF.
For me in addition to reading Ethics, i am going to read all my flash cards, thats what i trust the most
Other than what you’ve mentioned,
Quant : problems, how to detect, the effects on regression
Econ : SROs, relationship between IRP, IFR, Relative PPP, and what they are. currency forwards. cobb douglas, different growth theories
CorpFin : replacement project formula, economic income. definition of carve out, spin off, split off
Equity : forward looking ERPs, justified forward/trailing P/E, P/B, P/S, RI method with persistence factor, control premium/DLOC/DLOM/total discount
FixedInc : binomial tree for bonds with options, how to calculate forward price, forward rate, bootstrapping, CDS
Deriv : various forwards, binomial tree for options, IR options, various swaps, FRAs, greek risks, p+s = c+xe(-rt)
AltInv : NAV, FFO, AFFO, cost method, comparable approach, VC method (including 2 rounds of financing plus how to adjust discount rate for probability of failure)
PM : Obviously everything from fundamental law of active mgmt, and what outperforms/underperforms during recession
Just a few topics I can think on top of my head that I’ve seen way too many times in various mocks.
This hero gave a pretty good summary earlier in the week: https://www.reddit.com/r/CFA/comments/8rmyh1/one_week_out_must_know_topics_for_l2/
I’m pretty sure that you need to know this one: V0 = D1 / (r − g)
The rest are just gravy.