Quantitative Methods Presentation - Level I - CFA Program
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Transcript of Quantitative Methods Presentation - Level I - CFA Program
• Bloom’s taxonomy
• The CFA program process
• CFA under Bloom’s taxonomy
• QM location in the CFA Body of Knowledge (BOK)
• CFA topic area weights and Level I examination format
INTRODUCTION
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CFA LOS command words Example from Quantitative Methods
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Command Words
• Interpret
• Explain
• Calculate
• Solve
• Calculate
• Demonstrate
Knowledge Levels
• Comprehension
• Comprehension
• Analysis
• Analysis
• Analysis
• Application Not
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The CFA program process Pass rates (2000-2013)
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CFA under Bloom’s Taxonomy QM location in the CFA BOK
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Quantitative Investment Analysis, 2nd ed., by Richard A. DeFusco, CFA, Dennis W. McLeavey, CFA, Jerald E. Pinto, CFA, and David E. Runkle, CFA, with a foreword by Mark J. P. Anson, CFA (Wiley, hardcover, 600 pages, January 2007) Not
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CFA topic area weights Level I examination format
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CFA Calculator Policy Only two calculator models are authorized for use during CFA Program exams: • Texas Instruments BA II Plus (including BA II Plus Professional) • Hewlett Packard 12C (including the HP 12C Platinum, 12C Platinum 25th
anniversary edition, 12C 30th anniversary edition, and HP 12C Prestige) Not
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• Content
• Readings classification
• Do’s and Don’ts
QM IN PERSPECTIVE
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Readings classification
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Qu
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Time Value of Money (TVM) Study Session 2 : Basic
Concepts
Reading 5 : The Time Value of Money
Reading 6 : Discounted Cash Flow Applications
Statistics
Study Session 2 : Basic Concepts
Reading 7 : Statistical Concepts and Market
Returns
Reading 8 : Probability Concepts
Study Session 3 : Application
Reading 9 : Common Probability Distributions
Reading 10 : Sampling and Estimation
Reading 11 : Hypothesis Testing
Technical Analysis Study Session 3 : Application Reading 12 : Technical
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QM do’s and don’ts
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Do’s • Do spend a little time on each reading
and you will be amazed at how quickly you start understanding more complex concepts. A little effort to break an old perspective will go a long way and will help you immensely.
• Do solve as much questions as you can. Schweser and curriculum end of reading problems are the minimum.
• Do always practice on using the calculator. If you don’t master the calculator, it could waste a lot of precious time on exam day.
• Do keep the big picture.
Don’ts • Don’t take QM lightly. With 12%
weight, QM comes to be the 3rd heavily tested topic only after FRA and ethics.
• Don’t just memorize formulas; comprehend them.
• Don’t underestimate the power of quantification. You are in an analytical field and you need to embrace mathematics.
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