Friday, October 19, 2012

How To Study for The Quantitative Methods of the CFA Level I and II?

how to study for the quantitative methods sections of the CFA Chartered financial analyst level I and II.
 The quantitative methods section of the CFA level I is placed second in the CFA curriculum just after the ethics section, it consists of the following section : basic quantitative concepts which are very useful and used as a background for the calculations that are in the following parts of the CFA curriculum such as the time value of money, and all the related calculations in the discounted cash flows, variance and various returns measurements in the portfolio management section.

Following the basic quantitative concepts, you will have to go through slighty more advanced concept but nothing too complicated especially for those who majored in finance during college, you do not need a Phd in mathematics to understand quant topics of the CFA, here you will learn:
  • Probability concepts
  •  Sampling methods
  •  Hypothesis testing, correlation and regression.
At the end, there is one chapter on technical analysis which is quite interesting. If you are not a quant specialist or if you do not like mathematics and stats some of the topics above can seem quite tough but you cannot skip any of this, as the quantitative methods section accounts for about 10 to 15% of the multiple choice you better get a solid understanding and it will also help you for the following levels.

In my opinion you should not spend too much time on the quant basics  but just read and understand it in order to be fully efficient and dedicated on the harder sections of quantitative methods. There are no real shortcuts for this topic, except that you should do tons of practice problems for it, also get to know how to draw graph to have an idea of what you are doing while practicing hypothesis testing exercices, don't forget to dedicate only 2 min per question when you practice, you will have 1.5 min only during the real CFA examination.

Taking Notes for the CFA is a must as it will save precious time when you will revise it just before the CFA examination, if you decide to study for quantitative methods as the last part of your CFA level I learning process and you run out of time, you can skip the technical analysis as it is quite straightforward and it has not a big weight for the exam.

It is vital for you to determine what are your weaknesses in the CFA curriculum so you can study at first the parts you know the best and dedicate more time to the harder sections at the end.



Paramdeep singh said...

Nice article and I can't agree more. I believe that CFA Level-I quants is perhaps the most important topic from the CFA program perspective because it builds a good foundations for various other subjects not only in Level-I but also in Level-II and Level-III exams. In my experience, candidates especially from non-mathematics background should spend considerable time efforts for Level-I quants because master quants today would eventually save your preparation time in the long run.

business dissertation examples said...

It was a very nice article! Just want to say thank you for the information you have shared. Just continue writing this kind of post. said...

Your article is good. I like style of your writing. So I got pleasure reading it. Thanks a lot!

Sinelogix said...

Hey guys very good article
Website Design in Bangalore

Mobile App Developers said...

very informative post for me as I am always looking for new content that can help me and my knowledge grow better.

Raju Kumar said...

Great info. Lucky me I discovered your site by chance (stumbleupon). I have saved it for later!
Hadoop Online Training

Vasu Dev said...

good information
Stock Market Training in Hyderabad Ameerpet

Srinu Srinu said...

Excellent information with unique content and it is very useful to know about the information based on blogs.

Data Scientist Course in Hyderabad

rekha sharma said...

What a fun and upbeat read! I wanna start a blog now after reading this!,
Wedding Planners in Delhi

jack kodell said...

Hey that was great to read. Thanks for the great post .Loved every part of it.

Interior Designer in Delhi
Kitchen Interior Design
House Interior Design
Office Interior Design

Jack Orlova said...

We provide Maharaja Express Booking, A train almost half a mile long redefines luxury and comfort which will ultimately recall you the lifestyle of a princely era.
Maharaja Express

Rakesh S said...

Thanku for sharing this information..

Hadoop online training in hyderabad.All the basic and get the full knowledge of hadoop.
hadoop online training in hyderbad

jack thomas said...

I love your blog!! It’s super,,

Wedding Planners in Delhi

Raja B said...

Big data and data warehousing related information is always updated to me at hadoop online training in hyderabad. Nice insight on the topic refer the details at
hadoop online training

Emran H said...

great article about finance insider asia, Your post is very informative and helpful for us to improve my knowledge and skills.hadoop training in hyderabad

App Development Company London said...

These tips are very useful for me and for that really thanks for sharing with us.

Aditi said...

All the information is very helpful for everyone
thanks for sharing such a nice post. keep sharing

Post a Comment