CFA L1 Zombie Formulas

As far as i remember i hardly need to refer back to L1 much, apart from say the ROE DuPont formula which they assume you would have already know. Also, L1 formulas are briefly mentioned again in L2 materials if it’s required in L2.

For example, you learn about CAPM and GGM in L1, they explain in detail how it works, the drawback, etc but in L2 you are required to use it (L2 assumes you already know what it is).

As for LIFO and FIFO, I hope you are not blindly memorising what LIFO/FIFO are and the adjustment to the reserves etc. As long as you understand the concept, it will stay with you longer even till L3 or beyond. There are many concepts in CFA that don’t need memorising and you could use those ‘spare memory slots’ for other tougher formulas.

Тут бы успеть весь куррикулум прочесть и задачек порешать) ни на какие формулы из L1 времени нет..

@KOCMOHABT, Although I am not a L2-passee (not yet!), I have an opinion on this. I believe the answer is that we should have a pretty clear understanding of the L1 formulas for L2. Do we need to have them memorized? Only to the extent that they are needed for L2 tested (i.e. LOS) concepts; a clear example (from FRA) to me is the LIFO material (and there is some overlap on the LIFO reserve stuff between L1 and L2); and there are plenty of others. It makes sense that this is the case, since L2 pretty much builds onto L1, right? It’s as if for each reading from L1 there is an L2 reading that continues from it: while L1 had a description of markets or instruments, etc., L2 discusses the valuation concepts in those markets or of those instruments. Makes a lot of sense…