quantitative methods presentation - level i - cfa program

13
Guide to Quantitative Methods CFA Level I Not For Release

Upload: mohamed-farouk-cfa-cfte-i

Post on 16-Apr-2017

251 views

Category:

Education


8 download

TRANSCRIPT

Page 1: Quantitative Methods Presentation - Level I - CFA Program

Guide to Quantitative Methods

CFA Level I

Not

For

Rel

ease

Page 2: 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

2 Not

For

Rel

ease

Page 3: Quantitative Methods Presentation - Level I - CFA Program

Bloom’s Taxonomy - structure

3 Not

For

Rel

ease

Page 4: Quantitative Methods Presentation - Level I - CFA Program

Bloom’s Taxonomy - command words

4 Not

For

Rel

ease

Page 5: Quantitative Methods Presentation - Level I - CFA Program

CFA LOS command words Example from Quantitative Methods

5

Command Words

• Interpret

• Explain

• Calculate

• Solve

• Calculate

• Demonstrate

Knowledge Levels

• Comprehension

• Comprehension

• Analysis

• Analysis

• Analysis

• Application Not

For

Rel

ease

Page 6: Quantitative Methods Presentation - Level I - CFA Program

The CFA program process Pass rates (2000-2013)

6 Not

For

Rel

ease

Page 7: Quantitative Methods Presentation - Level I - CFA Program

CFA under Bloom’s Taxonomy QM location in the CFA BOK

7

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

For

Rel

ease

Page 8: Quantitative Methods Presentation - Level I - CFA Program

CFA topic area weights Level I examination format

8

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

For

Rel

ease

Page 9: Quantitative Methods Presentation - Level I - CFA Program

• Content

• Readings classification

• Do’s and Don’ts

QM IN PERSPECTIVE

9 Not

For

Rel

ease

Page 10: Quantitative Methods Presentation - Level I - CFA Program

Content

10 Not

For

Rel

ease

Page 11: Quantitative Methods Presentation - Level I - CFA Program

Readings classification

11

Qu

anti

tati

ve M

eth

od

s –

Lev

el I

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

Analysis Not

For

Rel

ease

Page 12: Quantitative Methods Presentation - Level I - CFA Program

QM do’s and don’ts

12

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.

Not

For

Rel

ease

Page 13: Quantitative Methods Presentation - Level I - CFA Program

THANK YOU!

13 Not

For

Rel

ease