Level 1 CFA® Exam Prep Bootcamp (Part 1/2)

Learn to set up and use Texas Instruments Battoo Plus calculator, mastering basic calculations, time value of money, cash flows, depreciation, and break-even analyses for CFA, Efrem exam, or MBA.

Master basic calculations on the Texas Instruments BA II Plus calculator, including square roots, powers, reciprocals, and time value of money methods, plus memory store and recall for CFA problems.

Set up your financial calculator for CFA prep by configuring four decimal places, end-of-period payments, and one payment per period, then choose between the chain method or AOS.

Master the time value of money (TVM) worksheet, including N, i/y, PV, PMT, and FV, to solve end-of-period and beginning-of-period cash flows for loans, mortgages, and leases.

Input uneven cash inflows into the cash flow worksheet to assess a capital budgeting project, then compute net present value and internal rate of return at a 10% discount rate.

Learn to use the Texas Instruments BA II Plus calculator to compute mean, variance, and standard deviation (sample and population) for one- and two-variable data, with hands-on problems.

Learn to use the financial calculator's depreciation and break-even worksheets, applying straight-line and double declining balance methods to compute depreciation, net book value, break-even quantity, and profit targets.

Define ethics as shared beliefs and moral values guiding what is good or acceptable, balancing self-interest with impact on clients and all stakeholders.

Explore how a code of ethics defines a profession by outlining trust, integrity, transparency, and excellent client service in investment management under CFA Institute standards.

Explore how ethical guidelines guide decision making, the limits of codes of ethics, and how internal motivations and external environments shape ethical behavior in finance.

Distinguish ethical from legal actions, examine how laws address past unethical behavior to reduce risk, and explore ethics beyond the law in decision making.

Describe the CFA Institute Professional Conduct Program as the enforcement mechanism for the code and standards, outline its six parts and seven standards, and preview the core ethics material.

Learn how the CFA Institute enforces its code and standards through the Professional Conduct Program, including inquiries, investigations, and potential sanctions by the disciplinary review committee and the designated officer.

Explore the CFA Institute's code of ethics and standards of professional conduct, guiding members and candidates to act with integrity and place clients' interests first.

Explain the CFA Institute standard 1a knowledge of the law, detailing how to understand and comply with laws, avoid aiding violations, and dissociate from misconduct.

Maintain independence and objectivity by avoiding gifts or benefits that could influence investment judgments, disclosing compensation, and favoring flat-fee issuer-paid research to manage conflicts.

Learn about standard one c misrepresentation, covering honesty in qualifications, accuracy in performance reporting, benchmark use, and plagiarism policies to protect investor trust.

Identify how standard one misconduct forbids dishonesty, fraud, and deceit, and how a code of ethics, background checks, and disciplinary guidance uphold integrity and professional reputation.

explains the integrity of capital markets and the rule against using material non-public information, introduces the mosaic theory, and outlines compliant disclosure and firewalls to prevent distribution of non-public information.

Explore market manipulation in the integrity of capital markets standard II B, distinguishing information-based from transaction-based manipulation and the impact of intent on distorting prices and trading volumes.

Assess client suitability by conducting a reasonable inquiry into client’s risk and return objectives and financial constraints, then ensure recommendations align with the investment policy statement and client’s total portfolio.

Learn how standard 3D requires fair, accurate, and complete performance presentations, avoid promises of minimum returns, include all accounts, and clearly label time-weighted and money-weighted returns, with GIPS guidance.

Learn how standard 3e preserves client confidentiality for current, former, and prospective clients, including legal exceptions, money-laundering disclosures, and electronic data security.

Explore standard iv a loyalty: acting for your employer's benefit, protecting confidential information, and avoiding conflicts during independent practice or resignation.

Ensure no member accepts additional compensation arrangements that conflict with their employer, unless all parties provide written consent and clarify terms, duration, and amount.

Supervisors establish adequate supervision systems and implement compliance and reporting procedures. They make reasonable efforts to detect and prevent violations, train staff, and foster an ethical culture with clear incentives.

Develop a reasonable and adequate basis for investment decisions and actions under standard five a by exercising diligence, independence, and thorough research across internal, external, and third-party analyses.

Understand standard five B: disclose the investment process, communicate risks and limitations, and clearly label facts versus opinions across all client communications.

Master CFA record retention by keeping all supporting documentation for investment analyses and communications, including notes, reports, and social media, and recognize employer ownership, local laws, and seven-year guidance.

Identify and disclose conflicts of interest under standard six a; practice full, prominent disclosure to clients and employers, and avoid or mitigate conflicts through clear disclosures and firewalls.

Explore standard 6B priority of transactions, demanding clients’ and employers’ interests first over personal trading; define personal trading, outline conflicts, disclosures, and practices like IPOs, private placements, and blackout periods.

Disclose referral fees in writing to employers and clients before contracts; explain impact on impartiality and cost, and follow compliant procedures for approval and ongoing disclosure.

Understand standard seven eight, protecting the CFA program’s integrity. Learn about not sharing confidential exam information, following the candidate pledge, and expressing opinions without disclosing assessment content.

Learn to reference the CFA Institute, the CFA designation, and candidacy under standard seven B, including level one to level three status, proper usage rules, and ongoing membership requirements.

Explore the global investment performance standards (GIPS), its history, why and who benefits, and learn about composite construction and the verification process used by compliant firms.

Explain the global investment performance standards (GIPS) and how they apply to investment management firms, enabling fair, accurate, and comparable performance reporting across borders.

Define composites as groups of portfolios with the same strategy under GIPS, include all discretionary and former portfolios to avoid survivorship bias, and compute returns as an asset-weighted average.

Explore the key features and compliance fundamentals of the global investment performance standards, outline the nine major sections, and cover scope for investment firms and historical performance records.

Explore the global investment performance standards (GIPS) and how they standardize and present investment performance for fair, comparable results across firms.

Explore the fundamentals of GIPS compliance, including firm-wide requirements for investment management firms, documentation, and three core responsibilities: accurate GIPS presentations, retired composites retention, and ongoing policies to monitor compliance.

Outline the scope of GIPS: define a firm as a distinct business entity, report total firm assets under management, and note that composites include only fee-paying, discretionary portfolios.

Explore the global investment performance standards (GIPS), covering compliance fundamentals, input data, calculation methods, composite construction, disclosures, and real estate and private equity considerations.

Explore the time value of money by illustrating how money today earns interest, producing present value, future value, and compound interest, using a timeline to compare cash flows.

Understand the time value of money and use discount rates to determine the present value of investments. Interpret interest rates as required rates of return, risk compensation, and opportunity costs.

Decompose interest rates into five components—the real risk free rate, inflation premium, default risk premium, liquidity premium, and maturity premium—and learn how market forces set nominal rates.

Explain how the effective annual rate accounts for compounding using the stated rate and compounding periods. Show semiannual and monthly examples, illustrating frequency increases the EAR and informs investment choices.

Explain the relationship between present value and future value, and derive the future value formula for multiple compounding periods using the periodic rate per year.

Solve time value of money problems by calculating future value and present value with various compounding frequencies (quarterly, monthly), using periodic rates, effective annual rate, and formula rearrangement.

Explore how compounding frequencies affect future value by comparing quarterly, daily, and continuous compounding at a 10 percent annual rate for a $1,000 deposit.

Compare annuity due with ordinary annuity by adjusting for beginning-of-period cash flows to determine future and present values. Multiply ordinary annuity results by one plus the rate for earlier payments.

Explore perpetuities, a type of annuity with infinite, constant cash flows, and calculate their present value using pv = pmt / i, with console's and rental income as examples.

Calculate the future value and present value of unequal cash flows by discounting each payment to a common point in time, using a 1% rate.

determine the rate of return for investments using time value of money concepts, calculating present and future values for single cash flows and ordinary annuities, with financial calculators.

Explore the cash flow adaptivity principle: add cash flows at the same time and discount to a common present value for parallel projects.

Learn discounted cash flow applications, calculate NPV and IRR, compare when they conflict, and explore portfolio return measurement plus short term market yields used by investors.

Learn to interpret net present value (NPV) by calculating the present value of cash inflows minus outflows with a discount rate. Positive NPV signals value creation for investments.

Apply the net present value rule to evaluate investments by discounting cash flows at 10 percent, compare independent and mutually exclusive projects, and select the highest NPV.

Compute the holding period return to measure investment performance, using (ending value minus starting value) over starting value, with cash flows like dividends; examples include a T-bill and Apple stock.

Explore the money weighted rate of return, an IRR-like measure that uses cash-flow timing and size to evaluate a portfolio, and compare it with holding period return and its limitations.

Explore how money market instruments, including pure discount T-bills, are evaluated using bank discount yield, with an example and discussion of its limitations and the move to alternatives.

Explore three alternatives to the bank discount yield: holding period yield, effective annual yield with 365-day compounding, and the money market yield on a 360-day basis.