Gostudymock3

Why Peer Groups are Useful for Industry and Company Analysis

We use industry analysis to better understand the big picture and a company's relative position within it. Peer groups is one comparable companies approach useful in valuation analysis (and tested in the CFA Level 1 exam).

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Gostudymock3

Basic Portfolio Return Calcuations

Not all portfolio return measurements are equal. This post covers the main CFA Level 1 methods/equations for measuring portfolio return.

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Gostudymock3

Price Risk vs. Reinvestment Risk in Fixed-income Investing

Everything you need to know about Price Risk vs. Reinvestment Risk in Fixed-income Investing for the CFA Exams.

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Gostudymock3

Is your lack of a CFA Level 1 study plan screwing you up?

There are four mistakes you're probably making as a CFA L1 Candidate that will derail your studying.

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Arbitrage 102

Arbitrage and Futures/Forward Contract Pricing

A review of how the CFA Level 1 exam tests arbitrage and why it matters for pricing futures and forward contracts. 

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Gostudymock3

Capital Asset Allocation Line (CAL), Capital Market Line (CML),and Portfolios of Risky and Risk-free Assets

Within the CFA Level 1 curriculum understanding portfolio risk and return is non-negotiable. And that knowledge starts with understanding the Capital Asset Allocation Line (CAL) and its similarities and differences to the Capital Market Line (CML) and the Securities Market Line (SML).

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Gostudymock3

Calculating Basic and Dilutive Earnings-per-Share (EPS) for CFA Level 1

For the CFA Level 1 exam you need to have a firm grasp on how to calculate both basic and diluted EPS under both simple and complex capital structures. Expect at least a few exam questions: one requiring the use of the Diluted EPS equation, another using the basic EPS calculation, and perhaps others testing your general understanding of dilutive vs. non-dilutive securities. 

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Gostudymock3

An Introduction to Asset-Backed Securities for the CFA Exam

The CFA level one exam will have several questions around asset-backed securities (ABS), mortgage-backed securities (MBS), and collateralized debt-obligations (CDOs). This post defines each, introduces tranching, and talks about all the key calculations you need to know for the L1 exam. 

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Gostudymock3

Monetary Policy 101 for the CFA Level 1 Exam

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Gostudymock3

Measuring Leverage - Understanding Financial and Operating Leverage

The CFA L1 curriculum stresses that is not enough to look at a potential project or company's financial return. You also have to assess the degree of risk involved with achieving that return. Leverage--whether financial or otherwise--is a key component of achieving this understanding.

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