Preparing for 2019 Level I with IFT

We know how daunting it is to start preparing for the CFA Program exams. To achieve success, you have to organize, schedule, study and practice, all in the most efficient way. That’s why we have made a simple How to Prepare for the CFA Program exams series to guide you through the process of beginning your studies.  Make sure you watch these videos carefully. Watch the video below and then the one below it. NEXT: click here to watch this video next!  (How to Prepare for your Level I CFA® Exam with IFT)

Level I

Preparing for 2018 Level I with IFT

We know how daunting it is to start preparing for the CFA exams. To achieve success, you have to organize, schedule, study and practice, all in the most efficient way. That’s why we have made a simple How to Prepare for the CFA exams series to guide you through the process of beginning your studies.  Make sure you watch these videos carefully. Watch the video below and then the one below it. NEXT: click here to watch this video next!  (How to Prepare for your Level I CFA® Exam with IFT)

Level I

Preparing for Level II with IFT

We know how daunting it is to start preparing for the CFA exams. To achieve success, you have to organize, schedule, study and practice, all in the most efficient way. That’s why we have made a simple How to Prepare for the CFA exams series to guide you through the process of beginning your studies. Make sure you watch the below video next “Level II CFA: Pass the exam with IFT!”   https://youtu.be/

Level II

5.4. Optimal Investor Portfolio

To identify the optimal investor portfolio, we must consider the investor’s risk preferences. The utility of each investor is best represented by his indifference curves. The optimal investor portfolio is the point at which the investor’s indifference curve is tangential to the optimal allocation line. Portfolio C in the exhibit below is the optimal investor portfolio.    

5. Efficient Frontier and Investor’s Optimal Portfolio

3.1. Roles and Objectives of Fiscal Policy

Primary objective: To help manage the economy through its influence on aggregate national output (real GDP). Fiscal Policy and Aggregate Demand Just like monetary policy, fiscal policy can be contractionary or expansionary. An expansionary fiscal policy can take several forms: Lower taxes Cuts in personal income tax (This increases the disposable income). Cuts in sales taxes (This lowers the prices). Cuts in corporate taxes increase business profits (This means that corporates have more money to invest). Higher government spending on social goods and infrastructure. Contractionary fiscal policy: It is the opposite of expansionary fiscal policy. Higher taxes or lower government… Read More

3. Fiscal Policy

1. Introduction

Non-current liabilities are long-term liabilities that are due after one year or more in the future. They are on the right-hand side of the balance sheet. Common non-current liabilities include bonds payable, notes payable, finance leases, pension liabilities and deferred tax liabilities. This reading focuses on bonds payable and leases.

R31 Non-Current Liabilities

1. Introduction

One of the key concepts we will discuss in this reading is deferred tax assets and liabilities. Deferred tax assets and liabilities are created because of differences between how and when transactions are recognized for financial reporting purposes relative to tax reporting.

R30 Income Taxes

3.3. Conversion of Cash Flows from the Indirect Method to the Direct Method

Instructor’s note: The probability of getting tested on this topic on the exam is low. The operating cash flow from indirect method can be converted to direct by using the three-step process: Aggregate all the revenues and expenses. Remove all noncash items from aggregated revenues and expenses and break up remaining items into relevant cash flow items. Convert accrual amounts to cash flow amounts by adjusting for changes in corresponding working accounts.

3. The Cash Flow Statement: Linkages and Preparation

1. Introduction

The major questions addressed in this reading are: How does the pricing of the underlying asset affect the pricing of derivatives? How derivatives are priced using the principle of arbitrage? How are the prices and values of forward contracts determined? How are futures contracts priced differently from forward contracts? How are the prices and values of swaps determined? How are the prices and values of European options determined? How does American option pricing differ from European option pricing?

R57 Basics of Derivative Pricing and Valuation