The Quantitative Methods section of the CFA curriculum has traditionally been placed second in the sequence of study topics, following the Ethics and Professional Standards review. It's an interesting progression: the ethics discussions and case studies will invariably make most candidates feel very positive, very high-minded about the road on which they have embarked. Then, without warning, they are smacked with a smorgasbord of formulas, graphs, Greek letters, and challenging terminology. We know - it's easy to become overwhelmed. At the same time, the topics covered in this section - time value of money, performance measurement, statistics and probability basics, sampling and hypothesis testing, correlation and linear regression analysis - provide the candidate with a variety of highly essential analytical tools and are a crucial prerequisite for the subsequent material on fixed income, equities, and portfolio management. In short, mastering the material in this section will make the CFA's entire Body of Knowledge that much easier to handle.

The list of topics within Quantitative Methods may appear intimidating at first, but rest assured that one does not need a PhD in mathematics or require exceptional numerical aptitude to understand and relate to the quantitative approaches at CFA Level 1. Still, some people will tend to absorb quantitative material better than others do.

What we've tried to do in this study guide is present the full list of topics in a manner that summarizes and attempts to tone down the degree of technical detail that is characteristic of academic textbooks. At the same time, we want our presentation to be sufficiently deep that the guide can be effectively utilized as a candidate's primary study resource. For those who have already purchased and read the textbook, and for those who already clearly understand the material, this guide should allow for a relatively speedy refresher in those hectic days and weeks prior to exam day. Along the way, we'll provide tips (primarily drawn from personal experience) on how to approach the CFA Level 1 exam and help give you the best chance of earning a passing grade.

Expect 12% of the questions on your CFA Level 1 exam to cover topics under Quantitative Methods.



What Is The Time Value Of Money?

Related Articles
  1. Personal Finance

    What to Expect on the CFA Level I Exam

    The Level I exam for the Chartered Financial Analyst designation can be challenging. Here's what to expect.
  2. Personal Finance

    What To Expect On The CFA Level I Exam

    Becoming a chartered financial analyst requires the passing of three grueling exams covering an array of topics.
  3. Personal Finance

    What To Expect On The CFA Level II Exam

    This article will help you understand the nuances of the CFA Level II exam.
  4. Financial Advisor

    Pass Your CFA Exams on the First Try

    Become one of the elite who pass these exams by using these simple study methods.
  5. Financial Advisor

    How Hard are the CFA Exams?

    Learn about the difficulty of the CFA exams with a description of the tests, some statistics on pass rates and suggestions that can help you pass the exams.
  6. Personal Finance

    What's on the CFA Level II Exam?

    The Chartered Financial Analyst Level II exam is the second of three tests that CFA candidates must pass.
  7. Investing

    What is Quantitative Analysis?

    Quantitative analysis refers to the use of mathematical computations to analyze markets and investments.
  8. Personal Finance

    Quantitative Analyst: Job Description & Average Salary

    Learn the different job duties of a quantitative analyst and how much money an analyst makes; understand the skills needed to be successful at this career.
  9. Personal Finance

    How to Ace the CFA Level I Exam

    Prepare to ace the CFA Level 1 exam by studying systematically.
  10. Personal Finance

    Quantitative Analyst: Career Path & Qualifications

    Learn about the work that quantitative financial analysts do everyday, and determine what it takes to become a successful professional in the field.
Frequently Asked Questions
  1. What's the difference between Google's GOOG and GOOGL stock tickers?

    Learn the difference between Google's GOOG and GOOGL ticker symbols. Splitting shares into classes prevents management from ...
  2. How can I purchase stocks directly from a company?

    There are a few circumstances in which a person can buy stock directly from a company. The following is meant to cover some ...
  3. How do university endowments work?

    Endowments represent money or other financial assets that are donated to universities or colleges. The sole intention of ...
  4. Is it possible to take the Series 6 exam without being sponsored?

    Unfortunately, the answer to this question is "No." The Financial Industry Regulatory Authority or FINRA (previously the ...
Trading Center