Listing Category: CFA Level 1

10 things to do during final CFA exam month.

Final month is the most crucial. During this month, managing yourself, your psychology is more important than preparing for the exam. Anxiety is at it\’s peak and most candidates, despite knowing the entire material,...

Present Value of Growth Opportunities (PVGO)

Most companies don’t remain the same size (i.e., have the same amount of earnings, net income) forever; with a soupçon of luck, a company’s earnings will grow, year after year. The value of a company’s opportunities to grow in the future is known, with no great originality, as the present value of growth opportunities (PVGO). Given the right information, calculating PVGO is trivial: it’s the difference between the (present) value of the company as is (i.e., including those growth opportunities) and the (present) value of the company assuming zero growth:

How to study Ethical & Professional Standards in 7 days?

YES! You read it correctly! This post is all about completing ethics in one week . It sounds crazy and it is indeed crazy but believe me that’s the way to do it. Blitzkrieg is the only way to get through Ethics.

The question is : Can it be done in 7 days?
Yes. It is manageable. I did it so you too can!

Time Diversification & Impact on Capital Allocation Decisions: A Corporate Finance Perspective

In his recent article, What Practitioners Need to Know…About Time Diversification , Mr. Kritzman offers a comprehensive view on time diversification. As an example, Mr. Kritzman outlines the following…

Importance Of Relative Valuation

Generally speaking, ‘valuation’ can be defined as the process for finding the ‘value’ of anything. In the world of finance, value of anything (tangible or intangible) would be reflected by the price that potential buyers and sellers agree to conduct the transaction for the transfer of ownership, which may obviously change with time. The demand and supply for are the drivers of the process of ‘price discovery’ of any asset in any market.

Inventory Methods: FIFO vs. LIFO vs. Average Cost vs. Specific Identification and Periodic vs. Perpetual

I apologize in advance: this article’s long.

Every inventory method has two important characteristics:

How will costs be assigned to cost of goods sold (COGS) and ending inventory (EI)?
When will those costs be assigned to COGS and EI?…

Time Value of Money: Using Timelines

Much of finance centers around the idea of the time value of money: a dollar (or euro, or yen, or pound, or yuan, or franc, or won, or ruble, or bhat, or rupee, or whatever) today is worth more than a dollar (or euro, or . . . well, you get the idea) tomorrow, because…

CFA Level 1 pass rate trends

The CFA level 1 exam pass rates for the last 5 years uncovered!…

Breaking Down CFA® Financial Reporting and Analysis – Level I

Through your studies, one of the most vital segments of the CFA® exam process you’ll encounter is the Financial Reporting and Analysis section. From an exam perspective, it represents roughly a fifth of the material covered. From a client perspective, it also holds quite a bit of future value, as interpreting reports and analyses are a big part of what investment analysts and asset managers do

Commodity Yields

Most investors interested in commodity exposure do not get it through direct investments in commodities; they do not buy physical oil, or wheat, or gold, or pork bellies, or whatever. Most investors (including mutual funds, ETFs, institutional investors, and individual investors) get commodity exposure through derivatives, specifically through commodity futures or forward contracts. We’ll concentrate on commodity futures.