TOP calculation questions to focus on

CFA Level I
#1

Hi, What would you say are the top 10 or so questions that involve calculations to know cold? The ones that always will show up. I’m trying to prioritize my reviewing. Someone told me that CAPM calculation always shows up on the test. Thanks

#2

For me, they are the following

  1. All TVM problems: FV, PV, IRR, NPV

  2. Portfolio problems: variance, CAPM

  3. Bonds: duration, convexity (how to compute the change in the bond price)

  4. Yield measures: time weighted, money weighted, geometric mean, average mean, effective/annual interest rates, bank discount rate

  5. Dirivatives: swap payments, no arbitrage on forward curves, option pay-offs

  6. Equity: Gordon model (one-, two-, stage)

  7. FRA: basic/diluted EPS

#3
  1. Hypothesis testing? z, t, chi, F?
#4

CAPM hands down

#5

Unless the LOS changed, there’s no need to worry about actually applying Chi-Squared and F tests - just know when you would need to use them. KNOW Z- & T-tests though.

#6

I found this a while ago. I hope you find it helpful.

http://blog.muschamp.ca/2012/11/24/29-cfa-questions-you-should-be-able-to-answer/

#7

I’m using this too! ^

#8

It seems logical to me :slight_smile:

#9

Q22: covariance of portfolio theory. I understand how to get the standard deviation using the DATA, and STAT function but how do you get correlation?

#10

Know dividend discount models inside and out, including CAPM. You ought to be able to calculate any type of multi-stage model. You’re very likely to get hammered on that stuff. You’re also likely to get hammered on just knowing the relations, which you can learn really well by doing practice questions.

#11

Divide by standard deviation A x standard deviation B. I’m pretty sure that the BA II Plus doesn’t give you the correlation.

#12

I built that.

I haven’t looked at the curriculum recently but those style of questions appeared regularly for years. There is some other post of my mine about more general review advice, but mainly I spent a lot of time doing practice problems, memorizing flash cards, and rereading sections that I got wrong on practice exams.

Good luck.