Do we have to memorize the equations before the exam?

[MBAFinance]

It is going to be tough to memorize all the equations like Bank discount yield, EAR etc.

 

[HarryBuffowitz]

Yes. You will not be given any equations at test time.

 

[StealthPlanner]

And it's more effective to memorize them before the exam than after.

OK, I deserve a dope slap for that one.....

While memorizing them is OK, it's also good to understand the relationships between the variables in the equations and how their units. I doubt we will be given something simple along the lines of "you bought a $1000 T-bill at a $100 discount that will mature in 180 days. What is the Holding Period Yield?" The question may be asked in a more complex way and give you the HPY and want you to calculate the time to maturity.

 

[jamespucyk]

Know your stuff cus anything and everything in the LOS statements are fair game for the exam and Stealth has a point; CFAI doesn't generally like to gift wrap questions. Difficult practice exams are useful though. I used Schweser Pro and they asked a ton of questions like giving you A (BDY) and asking to calculate (EAY), which challenge you.

 

[blueuser]

MBAFinance Wrote:
-------------------------------------------------------
> It is going to be tough to memorize all the
> equations like Bank discount yield, EAR etc.

Really, after you do the reading you can dedicate a couple of days right before the exam to memorize the schweser sheet formulas and should be all set. The test focuses more on you understanding rather than formulas.

 

[killamanjaro]

When I can't remember the entire formula -- I usually plug in numbers and go from there. Granted I haven't taken any exams yet but I'm not so worried about the formula as much as I am about remembering all of the concepts.

 

[fortune]

Memorize only if you want to.

 

[hobokencfa]

Either memorize or understand the equations. Either way, you need to know all equations because any of them can be tested.

 

[abhi17277]

I know this is CFA site but I just wanted to know if anyone is going for FRM in November?? Just wanted to get some ideas about this one bcos it looks pretty much similar to CFA 1.