Mathematics for CFA Exam Preparation

The video discusses the mathematical concepts required for the CFA exams, emphasizing that while the math is not overly complex, it requires significant memorization of formulas. Key areas include statistics, probability, algebra, corporate finance, accounting, fixed income, calculus, derivatives, economics, and equities. The speaker highlights the importance of understanding basic algebra and memorizing formulas to succeed. The video concludes with study tips and the notion that not everyone can pass the exams, even with ample study time, due to the complexity of some sections.

What level of math is primarily required for the CFA exams?

• Basic algebra

• Trigonometry

• Linear algebra

• Advanced calculus

Which statistical concept is NOT commonly tested in the CFA exams?

• Correlation

• Integral calculus

• Variance

• Standard deviation

What is a key component of probability testing in the CFA exams?

• Probability of E and F

• Probability of A and B

• Probability of C and D

• Probability of G and H

Which type of mean is NOT mentioned in the CFA exam context?

• Arithmetic mean

• Geometric mean

• Harmonic mean

• Exponential mean

What type of math is primarily used in the corporate finance sections of the CFA exams?

• Complex calculus

• Simple algebra

• Advanced trigonometry

• Differential equations

What are you calculating in the fixed income section of the CFA exams?

• Duration and convexity of bonds

• Stock prices

• Interest rates

• GDP growth

What is the binomial interest rate tree compared to in the CFA exams?

• A Sudoku puzzle

• A word search

• A crossword puzzle

• A jigsaw puzzle

Which of the following is NOT a part of the early calculus in level 3 CFA exams?

• Chain rule

• Unit roots

• Matrix algebra

• Random walks

What is a major focus in the economics section of the CFA exams?

• GDP production functions

• Stock market trends

• Currency exchange rates

• Bond pricing

What type of equations are prevalent in the equities section of the CFA exams?

• Currency equations

• Interest rate equations

• Stock valuation equations

• GDP equations