AuthorTopic: Question for those who passed Level 1!
julamo
@2009-11-15 15:36:25
Hi,

I am registered for the CFA Level 1 examination in exactly 38 days! I decided to enroll very late for this examination as it was a chance for me (in case of success) to pass the level 2 in June. I have barely started to study, and I am wondering whether I can make it in less than 1 month, which according to what I've read in other threads, sounds a little bit like mission impossible...

I have passed the IMC a few months ago, which I know is far away from the CFA, but still some useful basics in most areas covered by level 1. I am also graduate from business school in France, which gives me a good headstart for Economics, Probabilities, Accounting and a few other areas.

Here is my question for those of you who have passed the level 1 using analystnotes: there are more than 8000 questions on this website, do-you think that somebody who's done them all and understood the logic behind each answer stands a chance to pass the exam? I won't have time to go through the books and I learn much faster (and with more motivation) going through questions.

I would really like some answers and advice from people who actually know the exam, I have very little time left but I don't want to give up... I can't accept guaranteed failure at that point.

crackCFAlevel1
@2009-11-21 06:58:56
Can somebody help with this question?

Q 1) correlation coefficient = 0.75
Asset A S.D. = 0.15, Asset B S.D. = 0.1
Weight of asset A = 25 % and weight of asset B = 75 %. What is portfolio standard deviation?

Q 2)correlation coefficient = - 0.75.

Remaining data same as above

-- crackCFAlevel1
Debra84
@2010-04-03 15:27:53
hi!

formula for portfolio standard dev =>

Var = wA^2SDA^2 + w2^BSDB^2 + CorSDASDB
so to obtain standard dev, you have to take square root of this.

So, in words, the variation of portfolio is squared weight of asset A times squared SD of asset A plus squared weight of asset B times squared SD of asset B plus correlation A,B times SD of asset A times SD of asset B.

Hope this helps