Today I understood why we were given postcards to give to friends and family so they know why you will spend hardly any time with them for a couple of years...there is ALOT to cover. Not only do you have to study it, you have to learn the material to the degree where you've 'mastered' (as stalla puts it) it. You must be able to recall all the required knowledge for the test and answer the questions within the time given.
I finally comprehended the amount of study required when I did reading 7 today. There were 9 learning objectives for it, and it took a good 4-5 hours to get through it all. It was all statistics and even though I did the stats course required for university, there was a few more points that the CFA covers..
The sharpe ratio is probably the most interesting one (I can't remember if I learnt this in finance 362 or not). The formula for it is
Sh = (Rp – Rf )/Sp
Rp is the mean portfolio return, Rf is the mean return on the risk free asset, and Sp is the standard deviation of the return on the portfolio. The sharpe ratio gives you the return above the risk free rate on each unit of standard deviation. So this is a good formula to use when you want to measure the performance of the asset.
I just completed some basic questions regarding duties to employers. I got 11/13 which I'm very happy with. With the first couple of questions I didn't spend enough time reading them (I was lucky to get one of them right!). I need to make sure I read the questions carefully from now on. Every mark counts!
I did some questions yesterday on duties to clients/prospective clients and only got 14/24. I will have to review that section in the weekend.
159 days until the level 1 exam.
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