I thought I would post this just in case it helps others. I made that list I spoke about in this thread (http://www.analystforum.com/phorums/read.php?11,870655). It is a list of things that i have trouble with from all the CFAI material (mock exams 1 and 2 + all the samples)… I think it is particularly useful as it relates to material CFAI used in practice material. If you like, you can get my whole spread sheet from a link on my blog (http://www.jamescox.com.au/cfa-level-1-update-4-days-left-until-the-exam/) Must Revise E GIPS E GIPS only apply to investment management firms E - Under GIPs: composite must include all fee-paying discretionary accounts. non-fee paying can be added if disclosed. non-discretionary cannot be added. E ETHICS - you cannot have unfair allocation methods of shares even if you disclose E cannot knock people over on trading floor CF calculating NPV practice cashflows CF NPV profile - steeper slope = more sensitivity CF mismatching strategy for short term forecasting CF CAPM vs Bond Yield for Cost of Equity CF effective cost of financing (73 mock 1) CF discounted payback period (77 mock 1) CF FCFF + discount rates CF project sequencing CF profitability index = 1 + NPV / initial cost CF no tax deduction for preferred stock CF MMY / Discount basis yield CF DDM approach - cost of common equity = div yield + growth rate Q76 M2 CF 5 part dupont D graphs + put call parity / prot put, covered call D maintenance margin D covered call and protective put. Covered call reduces upside and protective put reduces downside minus costs. D FRA, swaps and different types D covered call + protective put (96 m2) AI Alternative investments (everything) AI property valuation methods AI commodities with stocks and inflation (111 m2) AI emerging mkts (114 m2) ECO Economic Profit vs Accounting Profit ECO okup + inflationary gap ECO government spending - budget deficits --> more loan demand —> IR higher ECO structural unemployment = changes in technology , frictional = influenced by unemployment compensation ECO The quantity of land and other renewable natural resources (37/mock 2) ECO Phillips curves - REVISE - 39 / mock 2 ECO feedback rules (40/mock 2) ECO Marginal cost pricing (42/ mock 2) ECO nom IR = real Ir + expected inflation ECO demand pull inflation leads to increase in price level and real GDP (44/m2) ECO McCullum = Monetarist (new). Taylor = Keynesian (new) ECO constant vs increasing cost industries FE forward rate calcs / options / swaps FE bootstrapping - forward rates FE different term structure theories (expectations, liquidity preference + …) FE GOVER OVER BOND EQUIVALENT YIELDS AND ANNUAL PAY BONDS (99 / m1) FE Zero volatility spread (103/m1) + OAS (104/m1) FE increasing yield curve = bigger spread between nominal spread and Z spread FE duration of portfolio is best described as % change in portfolios value if interest rates change by 100 basis points FE different types of risk (98 m2) FE Defaults rates + recovery rates (105 m2) FE spot rate final for Z coupon bond - dont forget semi annual compounding FE price sensitivity is negatively correlated coupon rate and level of mkt interest rates. FE SPV vehicles are rated abased on collateral and credit enhancement mechanisms sued FSA change in Lifo reserve due to change in inventory FSA discon items, other comprehensive income, extraordinary items FSA gaap vs ifrs FSA CFO direct / indirect FSA 5 component dupoint’ FSA DTA?DTL accrued warranty FSA SFAS143 FSA depreciable lives in high inflation times FSA expensing vs capitalising r&d FSA Treatment of Intangible Costs under GAAP(LOS 36b) FSA % of Completion vs Completed Contract - revise FSA net income --> FCFF FSA FSA phases of analysis FSA intangible assets and impairment FSA Calculations on leases (q59 moxk 1) FSA growth rate does not -->DTA/DTL (Q 60 mock 1) FSA treasury stock method (!65 mock 1) FSA Lease payment calc (Q66 mock 1) FSA actual vs incurred expenses DTA / DTL (Q67 mock 1) FSA always compare interest expense as a % of sales NOT total debt FSA remember to put dividends paid into net income if from year before FSA tough question on LIFO / FIFO COGS (51/m2) FSA if there is no change in lifo / fifo, net profit margin is the same FSA ADVERSE OPINIONS!!! FSA Q59/M2 - A=L + E… A= L + (Cont cap + ending retained earnings)… A= L + [(cont cap) + (beginning retained earnings + Net income - dividends)] FSA Discount Bonds = CFO Overstated, CFF understated FSA Premium Bonds = CFO Understated, CFF Overstated FSA Zero Coupon = CFO Severly Overstated, CFF Severly Understated FSA treasury stock method FSA The tax expense less DTL = Tax payable less DTA FSA trading sec / available for sale + HTM securities effect on BS / IS M/E time weighted return (GM) vs moneyweighted return (IRR) M/E price weighted / value weighted unweighted indexes M/E EMH M/E investments in diff bus cycles M/E porters five forces + industry life cycles M/E statistical models for long term projections, models for medium term M/E commodities with stocks and inflation M/E Technical Analysis M/E projection models, averages and statistical techniques M/E types of indexes (Q79 / m1) M/E intrinsic value calcs (Q84 mock 1) M/E bias (behavioural, survivorship, arbitrage) M/E end of year dividend!!! M/E price weighted index and stock splits (Q79 / mock 2) M/E calculating P/BV (85/82/90 m2) M/E equivalent number of firms = 1/ HHI M/E valuation using FCFF (84 m2) M/E call markets no primary mkt (87 m2) M/E FCFF (88 m2) PM Relaxing of CAPM assumptions PM Portfolio management (everything) PM not compensated for risk that can be decreased by diversifying PM people dont ask for risk PM Market risk = systematic risk = non-diversifiable risk = risk you are compensated for. Q roy’s saftey first Q probability inc bayss theorem Q correlation Q Monte Carlo vs Historical Simulation(LOS 3.9.i) Q Random Sampling Q harmonic mean Q portfolio variance, correlation and covariance Q hypothesis testing Q roy’s safety first vs sharpe ratio Q Mean average deviation Q confidence intervals Q consumer surplus calculations Q EAY / EAR / compunding freq Q Q money weighted return = IRR, time weighted return = geometric mean Q positively skewed distribution has a long tail to the right. Therefor mean >median>mode Q Probability) P(a or B) = P(a) + P(b) - P(ab) Q standard error (s.d/root n Q hypothesis testing process (32 mock 2) Q 1st: cov(a,b) = corr x stddev(a) x stddev(b) Q 2nd: cov(A,B) = E[R(a) - E(R(a))]E[R(b) - E(R(b))]
Great list zero. Nice site by the way, keep up the good work and good luck on Sat!
I hope you put as much effort into studying as into creating your site and this list.
lol E cannot knock people over on trading floor
I have learnt most of the course starting from a zero finance / acounting / eco background (did law/science at university). If i pass with ~100-150 hours study, then great. Edit - it was also studying that created this list. See the thread i linked to)