CFA resources

Investment analysis, valuation and portfolio management

• Equity multiplier in a consistent DuPont chain

  Use the equity multiplier in a consistent dupont chain relationship with explicit definitions.

  Formulas

• Five-factor DuPont identity and denominator conditions

  Use the five-factor dupont identity and denominator conditions relationship with explicit definitions.

  Formulas

• Payment for a fully amortizing level-payment model

  Use the payment for a fully amortizing level-payment model relationship with its timing and rate conditions.

  Formulas

• Future value of dated cash flows at a common time

  Use the future value of dated cash flows at a common time relationship with its timing and rate conditions.

  Formulas

• Interest coverage using EBIT

  Read the interest coverage using ebit formula, variables and scope.

  Formulas

• Inventory turnover and its cost-flow basis

  Use the inventory turnover and its cost-flow basis relationship with explicit definitions.

  Formulas

• Present value of a level perpetuity

  Use the present value of a level perpetuity relationship with its timing and rate conditions.

  Formulas

• Discrete probability-model mean and variance

  Apply probability weights to outcomes and squared deviations without a sample-size divisor.

  Formulas

• Modified duration formula and yield convention

  Relate Macaulay duration to local yield-based price sensitivity.

  Formulas

• Net profit margin

  Use the net profit margin relationship with explicit definitions.

  Formulas

• Net working capital: current assets less current liabilities

  Read the net working capital: current assets less current liabilities formula, variables and scope.

  Formulas

• Net present value formula and time-zero cash flow

  Read the NPV sum and understand its signs and timing.

  Formulas

• Odds for, odds against and probability

  Identify the denominator and quotation direction before converting an odds ratio.

  Formulas

• Operating cycle from inventory and receivable days

  Use the operating cycle from inventory and receivable days relationship with explicit definitions.

  Formulas

• Future value of an ordinary annuity

  Use the future value of an ordinary annuity relationship with its timing and rate conditions.

  Formulas

• Present value of an ordinary annuity

  Use the present value of an ordinary annuity relationship with its timing and rate conditions.

  Formulas

• Payables turnover using a purchases base

  Use the payables turnover using a purchases base relationship with explicit definitions.

  Formulas

• Quick ratio with explicit asset components

  Read the quick ratio with explicit asset components formula, variables and scope.

  Formulas

• Receivables turnover with a stated sales base

  Use the receivables turnover with a stated sales base relationship with explicit definitions.

  Formulas

• Return on equity with a stated average

  Use the return on equity with a stated average relationship with explicit definitions.

  Formulas

• Sample tracking error: deviations of active returns

  Distinguish sample tracking error from mean active return and root mean square deviation.

  Formulas

• Single-sum present and future value

  Use the single-sum present and future value relationship with its timing and rate conditions.

  Formulas

• Three-factor DuPont identity

  Use the three-factor dupont identity relationship with explicit definitions.

  Formulas

• Total asset turnover with an average base

  Use the total asset turnover with an average base relationship with explicit definitions.

  Formulas

• Simple and effective annualization of discount costs

  Use the simple and effective annualization of discount costs relationship with explicit definitions.

  Formulas

• Period cost of forgoing an invoice discount

  Use the period cost of forgoing an invoice discount relationship with explicit definitions.

  Formulas

• CFA Level I exam format and timing

  Understand the question and session structure, then use it in a pacing rehearsal.

  Exam guides

• CFA Level II item sets and session timing

  Connect vignette-supported questions with a shared session time budget.

  Exam guides

• Preparing paired returns for a tracking error calculation

  Check date alignment, return conventions and missing observations before entering two series.

  Tool guides

• UK Stewardship Code 2026: reporting structure and a learning case

  Distinguish the current Code’s reporting parts from an engagement activity log.

  Exam guides

• Bonferroni thresholds and the family error bound

  Divide a family error budget across valid individual tests.

  Formulas

• Assuming independence in every multiple-test screen

  Inspect the product step rather than treating 1 − (1 − alpha)^m as universal.

  Common mistakes

• Family-wise error and false discovery rate

  Identify whether a method controls any error or an expected fraction among rejections.

  Concepts

• False-rejection counts and family error risk

  Read two different summaries of a fictional ten-test experiment.

  Worked examples

• Halving every two-sided p-value

  Check the statistic sign and the planned alternative before using a tail shortcut.

  Common mistakes

• Mean confidence intervals and prediction intervals

  Distinguish estimating the population mean from predicting a new observation.

  Comparisons

• Reconciling a mean interval with a two-sided test

  Use the same model and uncertainty inputs in both calculations.

  Worked examples

• A mean test with known population standard deviation

  Reconstruct the standard error, standardized statistic and two-sided decision.

  Worked examples

• Error probability across independent tests

  Use the complement calculation with its independence and true-null assumptions.

  Formulas

• P-values and the null model

  Read the conditioning statement before interpreting a small probability.

  Concepts