Is it just me or has anyone else noticed that the first 8 readings in the Equity book are complete bull $hit? I’m thinking the 20-30% of the questions that are promised from this volume will come from the last 5 readings that focus on actual valuation concepts. What do you guys think about this?
don’t bet on it… valuation be damned - CFAI cares about the “weepy wisey” theory that puts us to sleep - because they know precisely the effect on us. See Level 1 - the amount of economics they made us go thro’ 900 pages of junk… ( I am biased negatively to Econ. so please no one jump on me). This material too - esp. the Porter stuff (considering it is a new reading) is specially testable in the CFAI’s eyes.
Agree with CPK - except his dislike of econ! My (limited) experience suggests that the CFAI loves to test obscure items, probably figuring that if you know those cold, you also know the more prominent material.
I would love it if equity had nothing to do with calculations…not gonna happen, but it would be ok by me
I think its extremely difficult to guess what they’re going to test. I agree the heart of the material seems to be the valuation models, but all the other material is very testable. I’m planning adding it to my bedtime reading since it really does put me to sleep.
As I mentioned in another thread, I found the Equity materials quite conceptually simple, but they are pretty long and have a lot of details. IMO, this make them very testable materials.
Someone posted that this happened in June '08, that there were no ‘obvious’ equity questions (i.e., DDM, FCFE, H-Model, RI etc.) and that they were all qualitative, which made them feel robbed as they’d put a lot of effort into memorising the formulae.
Porter shows up quite often in the tests - those first 8 sections WILL be tested in some way, make no mistake of that. And once you encounter the practice tests, you will see that its not quite as simple as it seems. Trying to guess what will or won’t be on it is a great way to fail. There will probably be four vignettes on equity, which is plenty of room to test both valuation and more qualitative material (and they can do both in one if they want to.) That’s not true, by the way… there was definitely a DDM and RI model on the test last year - no FCFE though. No reason to get frustrated about it, though - there are only 120 questions and a great deal of the material won’t get tested, but you had still better know it.
Shoot I wouldn’t mind if all they wanted to test was the qualitative touchy feelly crap, it easy as day. And I have worked the questions at the end of each of the readings supplemented with Qbank, and this is in response to Aimee, and they are as simple as they seem. The L1 qualitative questions were much more difficult than these. My thinking is if they don’t want a 60% pass rate they better stick to asking the harder questions, because the first 8 readings are way too easy as are the accompanying questions. If you have some common sense and are well read (i.e. you have read The Competitive Advantage of Nations and the like) you should have no problem any of the questions from those readings.
“weepy wisey”? Never heard this term, in fact, if I run a google search on this term this is the only website that comes back.
trademark it now.