CFA CFA Level 2 L2 “Calculate” LOS Tally

L2 “Calculate” LOS Tally

  • This topic has 3 replies, 3 voices, and was last updated Oct-17 by Jim.
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    • Jim
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      I recently had a friend who is completely oblivious to the struggle that is the CFA exam and asked, “How math-y is it anyway?”. It brought up a good question that I hadn’t thought about in a while, which is how may LOS (Level II) actually ask you to calculate something (as a command word). Of course you have to analyze, interpret, estimate and so on, but I think this could help those of us who need to focus our studies on the more quant heavy areas. So I tallied them up. It’s prob important to remember that not all LOS are created equally (“calculate PBO” versus “calculate P/E” count for the same here!).

      Total LOS with the command word “Calculate”: 91

      Broken out by area (arranged from greatest to fewest):
      Equity – 27
      Quant – 12
      Derivatives – 11
      Corp Fin – 10
      Port Mgmt – 8
      Fixed Income – 7
      Alt Inv – 6
      Econ – 5
      FRA – 5
      Ethics – 0

      Broken out by reading (Top 9)
      Market-Based Valuation: Price and Enterprise Value Multiples (Reading 37) – 9
      Discounted Dividend Valuation (Reading 35) – 8
      Portfolio Concepts (Reading 57) – 7
      Correlation and Regression (Reading 11) – 5
      Currency Exchange Rates: Determination and Forecasting (Reading 14) – 5
      Swap Markets and Contracts (Reading 54) – 5
      Time-Series Analysis (Reading 13) – 4
      Mergers and Acquisitions (Reading 29) – 4
      Residual Income Valuation (Reading 38) – 4

      The top 9 readings comprise over half of “Calculate”. My apologies in advance if I made any mistakes in the above tally. I don’t know if anyone will find this helpful, but I do know there are some readings I intend to revisit to I am not blankly staring on exam day 🙂

    • Sophie Macon
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      Thanks for sharing @Jim‌ ! A good way to answer your friend’s question certainly. And also points out to common weak spots in Quant, Derivs and Equity sections.

      How’s studies coming along?

    • TimBCanada
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      Wow yes that is good to know! I would think in FRA there would maybe be a different trigger word than ‘calculate’, but in the end it would be a numerical solution to numerical inputs that it is looking for. Not a big difference, but maybe just because there isn’t a simple 1-step formula they don’t use the word calculate as often in that section. In any event even 91 calculations is quite a few!

    • Jim
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      FRA has a lot of “Explain” commands, which can be tricker (at least to me) than calculating for that section (e.g. explain how increasing X affects financial statements/ratios).

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