Absolute must knows

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.


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 / (rg)

The rest are just gravy.