Are these important?

CFA Level I
#1

Is it important to memorize the Traynor and M-Squared or derivations of CAPM? I kind of breezed by this area of study, telling myself that I know CAPM and interpretation of beta and so forth without forcing myself to re-memorize the single vs. multi asset derviations or the ratios other than Sharpe. How deeply do you think we need to know this stuff?

#2

You need to know it only if they ask questions about it on June 4.

#3

S2000Magician -

Thank you very much for the help. I hadn’t considered that approach.

#4

wink

Everything’s fair game.

I’d make sure that I knew them.

#5

Thanks… In seriousness, I am trying to focus on the aspects that are most likely to to show up and don’t have a great sense of how deep they generally look to go.

I am using the official texts for studying and there is admittedly a lot filler in there that seems to go beyond a reasonably testable cirriculum, so was trying to get a sense of if those apsects of portfolio construction are fair game. Sounds like you say they are.

So, I guess I have a couple more index cards to fill out.

Thanks again.

#6

My pleasure.

Even the tiny stuff can be worth a point on the exam.