100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
CFA Level 1 Formulas Exam Questions with Correct Answers $14.49   Add to cart

Exam (elaborations)

CFA Level 1 Formulas Exam Questions with Correct Answers

 6 views  0 purchase
  • Course
  • Institution

CFA Level 1 Formulas Exam Questions with Correct Answers 95% confidence interval - Answer-+/- 1.96 SDs 99% confidence interval - Answer-+/- 2.58 SDs Z score - Answer-(x-mean)/SD Roy's safety first ratio - Answer-(E(Rp) - Rtarget)/SD Mean sampling error - Answer-mean - miu Standard...

[Show more]

Preview 2 out of 13  pages

  • March 1, 2024
  • 13
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
avatar-seller
CFA Level 1 Formulas Exam Questions
with Correct Answers
Price change based on convexity - Answer--duration(change in yield)+1/2(convexity)
(change in yield)^2

Effective Duration - Answer-Required if a bond has embedded options:
[(v-)-(v+)]/[2V0(change in curve)]

Modified Duration - Answer-[(v-)-(v+)]/[2V0(change in yield)]

Future Value - Answer-PV(1+(I/Y)^N)

PV - Answer-FV/(1+r)^n

PV of perpetuity - Answer-PMT / discount rate

Approximate percentage price change of a bond - Answer-(-)(modified duration)(ΔYTM)

Nominal Risk Free - Answer-Real Risk Free + expected inflation

Required Return - Answer-Nominal risk free + liquidity premiums + default risk premium
+ maturity risk premium

EAR - Answer-[(1+periodic rate)^N ] - 1

EAR continuous - Answer-e^r - 1

Bank discount yield - Answer-(FV - Price)/(FV) * (360/T)

HPY - Answer-[(P1+D1)/P0] - 1

EAY - Answer-(1+HPY)^(365/T) - 1

HPY (MMY equation) - Answer-MMY * (T/360)

MMY - Answer-HPY * (360/T)

Geometric return - Answer-[(1+r1)(1+r2)(1+r3)]^(1/n) - 1

Time weighted return - Answer-[(1+HPY1)(1+HPY2)(1+HPY3)]^(1/n) - 1

Harmonic Mean - Answer-[N/(sum of (1/sample means))]

, Position of observation - Answer-(n+1)*(k/100)

Excess kurtosis - Answer-Sample kurtosis - 3 (3 is normal kurtosis)

Mean absolute deviation - Answer-sum of: (mean - sample mean)/n-1

Variance - Answer-(x-mean)^2/N (population) and divided by (n-1) for a sample

Coefficient of Variation - Answer-Sample standard deviation/sample mean

Sharpe Ratio - Answer-Risk of portfolio - risk free / Standard deviation of portfolio

Joint Probability - Answer-P(AB) = P(A|B) * P(B)

Addition rule - Answer-P(A or B) = P(A) + P(B) - P(AB)

Multiplication rule - Answer-P(A and B) = P(A)*P(B)

Total Probability Rule - Answer-P(A) = P(A|B1)*P(B1)...+P(A|B2)*P(B2)

Expected Value - Answer-P(x)*(x)

Covariance - Answer-P[(Ra - E(Ra) * (Rb - E(Rb)] - sum for all probabilities that sum to
1 OR [SDa*SDb*correlation)

Correlation - Answer-Covariance(A,B) / SDa*SDb

Portfolio expected return - Answer-weight times the E(R) of each stock

Portfolio variance - Answer-Wa^2*SDa^2 + Wb^2*SDb^2 + 2WaWb*SDa*SDb*Corr(a,b)

Baye's formula - Answer-P(new info) / unconditional probability of new info*prior prob of
event

Combination binomial - Answer-nCr - order doesn't matter

Permutation binomial - Answer-nPr - order matters

Binomial probability - Answer-nCx * p^x * (1-p)^(n-x)

Binomial Expected value - Answer-nP

Binomial variance - Answer-np(1-p)

90% confidence interval - Answer-+/- 1.645 SDs

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $14.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

78998 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$14.49
  • (0)
  Add to cart