Anyone have any good mnemonics for lvl one material? I only know a couple and they really help me out. Thanks!
The only one I have at the moment is… ‘‘professional investors don’t disclose internal confidential relationships’’ for ethics. I have to credit someone on AF for that one…
Care to share yours?
Cool - that will be helpful.
The one I have is for the Put-Call Parity formula, I got it from the Kaplan mock exam review. The formula is:
Long _ C _all + Long _ B _ond = Longt _ S _ock + Long _ P _ut
The _ CBSP _ stands for COW BOYS SING PRETTY
You can use basic algebra to re-arrange this formula and figure out the underlying synthetic derivative.
My mock asked me how to create a synthetic short position in a common stock: -Long call = Long Put - Long Call - Long Bond. Which means: Short Call = Long Put + Short Call + Short Bond
Now I hope CFAI asks me this question on exam day!
That looks like a good tool, thanks!
Ur Welcome
For skewness I think of a picture of a shis kebab (hence the skewer).
So the thicker ‘ring’ end is where the bulk of the distribution and whichever way its pointing is the way its skewed.
Sooooo right skewed.
O–00000------>
And left skewed.
Also when thinking about which order Mean Median and Mode is on a skewed distribution, just remember that median counts the middle and so its in the middle. And that mode is the one that counts the most so its in the ’ thickest’ part of the distribution. Mean is therefore by default the one on the other side of the median.
BDY(Bank discount yeild) = Discount*360/Face value*days
= D * 360 / F * T
I Imagine a D evil doing a 360 on a F iery T armac.
Money market yeild (MMY )= HPY * 360/ T
I imagine my mummy( MMY ) becoming happy( HPY ) while i do a 360 on the T armac
I have a few other but they would only make sense to me. This is really good way to remember formulas permanently
Real basic/stupid one to keep straight options terminology that I have used since ugrad finance classes:
“CaBu PuSe”
–>Purchasing a Call option gives you the right to buy at the strike price (CaBu)
–>Purchasing a Put option gives you the right to sell at the strike price (PuSe)
It’s simple and sounds stupid, but for some reason saying CaBoo Pussay in my head has stuck with me all these years. It has helped keep me from making some careless mistakes when crunched for time.
Personally, I could use some help finding a way to remember which accounting differences are for IFRS and which are for US GAAP, so any tips/tricks would be greatly appreciated.
Another one I have is for the six components of the Code of Ethics:
“R.A.M.P.E.J.” (sounds almost like the word “rampage”)
–> Rules, Actions, Maintain, Priority, Encourage, Judgement
And for anyone that knows who the UFC guy named Quinton “Rampage” Jackson is, there is a corny line I thought of to remember there are six components to the Code:
–> “RAMPAGE Jackson doesn’t have ETHICS, but he does have a SIX pack.”
It might sound stupid, but those are the type that tend to stick in my head best when under pressure.
These are great, thanks guys!
RION (Ryan) for Ratio Interval Ordinal Nominal which puts the different types of data in hierarchy from most useful to least.
Whenever I need to remember the Put-Call parity formula I just remember S&P, the stock and put go together and once you know that the other side is obvious.
Did anyone buy the full mnemonics book? Is is worth it? Anyone care to share it with me and have good karma?