Hi, I am an IT professional . I have enrolled for level-1 Dec-2010 and taken stalla and finding the economics section bit overwhelming. Can you guys share on the type of questions asked on economics-is it a mixture of both problems and theory or theory alone? How is stalla material? Many Thanks for sharing your thoughts. REgards, ABhijit
Have you taken first year level of micro and macro economics? The official CFA textbook Volume 2 (Economics) state candidates are expected to know the basic knowledge of micro and macro economics at first year university level. If you have not taken these courses at school, or have been a long while ago. You are better to read any economics textbook to those topics before you continue. The CFA-suggested economics book by Michael Parkin is a very good book, and it was the textbook for my micro and macro economics courses. You can read the corresponding chapters in the Parkin book listed on the CFA Vol2 book. I cannot comment on the Stalla economics section since I have not seen it. But if I see a topic in any external study material that is confusing and overwhelming, I would just read the CFA books and come back to the study material for EOC questions.
THanks for your reply. After reading various discussion threads here, I am bit confused about the priority I should give to the study materials in hand. I was thinking of focusing on the CFA material and going through it religiously and back it up with the stalla and classes that I will attend. Do you think I need a better plan. As always, thanks for the thoughts and feedbacks. Regards
Pretty much follow the order in the CFA books. Start with Quants. Interest, PV, FV, mean, covariance, variance, standard deviation, will repeat over and over for other parts. If you are confused with economics, do later. Make sure you understand FSA/accounting well (20% weight) before you move to Corporate Finance and portfolio. Study Equity and Fixed Income next as they are heavy-weighted. Do alternative Investment after equity and fixed income. I would leave Ethics until the end of study, before mock practice.
I’d also prepare mentally for the possible outcome that you’ll need two years to get on track (if you don’t have a strong foundation in economics and accounting this might indeed happen). If this is so, don’t regard it as a failure, do instead consider making a second attempt. It is a difficult program even for people who hold a degree in, say, accounting or economics.
MehdiOchre Wrote: ------------------------------------------------------- > It is a difficult program even for people who hold a > degree in, say, accounting or economics. True; that’s because the exam tests a wide breadth of knowledge and no one single area is given more than a 20% weight, and no one university major covers every topic as thoroughly as does the CFA curriculum.
well @32 and after 8yrs in IT I obviously need to keep my chin high and work through this. Thanks anyways for the perspective.
MehdiOchre Wrote: ------------------------------------------------------- It is a > difficult program even for people who hold a > degree in, say, accounting or economics. True. My hats off to anyone without a finance/econ background trying to tackle this stuff. Funny, though, Econ has been a breeze for me. I went through all the Schweser EOC questions and got only 1 wrong, and that’s before reading any of the material. Guess my degree finally served its purpose? Then I got to FAR and it’s been pretty much downhill from there.
My post is for everyone replying to this thread: Do not leave ETHICS for the last! People fail to absorb Ethics when doing it in the last few days. Key to Ethics is practice and loads of it. Abhijit, if you read CFAI material, you can very well get hold of Economics material and kill it for sure. If you need more help, I can help with queries. I recently took the Level 2 exam in June =)
Thank you so much for your reply and extending the hand. I will give a shout if need more help.