# Memorize Formulae - Panic

Is it necessary to memorize all the formulae? We’ll have 1000s of formulae in the course and how do we keep track or remember all of them… Share your tips, thoughts, trouble, etc…

Memorize = bad Know the concepts (why the formulas are the way they are) Its not too late but you got some work to do if you’re trying to memorize stuff at this point.

(Insert chiding language here for failing to check the CFAI website FAQ. You earn a Stephen Colbert “wag of the finger”) http://cfainstitute.org/cfaprog/faq/faqs_candidates.html##70 “I have begun studying for the Level I exam and discovered that there are many formulas presented. Are candidates expected to memorize all these formulas? Candidates are expected to be able to perform the actions specified in the learning outcome statements (LOS). If a formula is required, then it should be committed to memory.”

ok guys… thanx…

Niblita75 Wrote: ------------------------------------------------------- > Memorize = bad > Know the concepts (why the formulas are the way > they are) - NO MATTER HOW YOU LOOK AT IT , MEMORIZING 1000 CONCEPTS (WHY FORMULAS ARE THE WAY THEY ARE) IS EVEN HARDER THAN MEMORIZING THE FORMULAS THEMSELVES. THATS WHAT MAKES CFA VERY INTERESTING AND CGALLENGING! > > Its not too late but you got some work to do if > you’re trying to memorize stuff at this point.

I respectively disagree.

Niblita’s right, you can’t memorize all that shit. You need to know the mechanics and logic behind them. Or have a photographic memory like yours truly. That helps too.

As long as we don’t have to memorize the kurtosis formula, I’m happy. (we don’t do we?)

Just know that a normal distribution has a kurtosis of 3 and anything greater than that is excess kurtosis. X-3=1 would mean such and such distribution has excess kurtosis.

If you had any guts you would simply wing it.

Don’t memorize for the sake of it. But some theories just simply have to be memorized, e.g. bond adjustments and the like. Having written in June and just failing, I can tell you that come exam day, knowing some formulas hard after using them extensively can provide that extra boost that leads to a pass!

Well, if you’re using a BA II Plus, the TVM formulas are a non-factor. Even a lot of the statistical formulas can be computed using your calculator. The key is to understand WHY the formulas are how they are and note any patterns between one formula and the other. For instance, by taking the formula for variance, you can derive the formulas for standard deviation, skewness, kurtosis, and, resultantly, excess kurtosis. It helps to have a strong mathematical background in areas such as algebra and calculus as well.