More time memorizing or more time on questions?

[kwaj]

CFA L1 has a lot of equations to remember, which could take a fair bit of time. My questions are,

1) what proportion of the equations, in the Schweser equation sheet, are actually used in the exam?

2) is it worth spending a considerable amount of time memorizing equations and definitions?

3) is my time best spent just trawling through questions?

Thank you.

 

[malnoll]

It isn't the best idea to look at the exam that way. There isn't a set list of questions that will be the same in Dec. as were on the June exam...The best way to go about passing is put in the time and learn the material, not just memorize equations. If you learn the reasoning behind the material, you will be alot better off and be able to work through any problems that you forgot the equations to. That said, people generally learn more by doing. I read the material a couple times and then just worked through alot of problems, and it worked out well.

 

[jabroni]

Good post malnoll,
Understand the equations, don't memorize. There is always a curve ball or two in the exam, and if you have an understanding behind the equations you can hit them out of the park. That being said, doing lots of practice questions will help you understand them. Let me give you an examplle....

It's one thing to simply memorize the Dupont formula, it's another to understand it. On June 2007 L1, there were a couple Dupont questions where simply memorizing Net Profit Margin * Asset turnover * Equity Multiplier would not cut the mustard. Perhaps they give you equity turnover, and you need to recognize that equity turnover = asset turnover * equity multiplier.

Or perhaps they don't give you the equity multiplier, but give you debt/asstes. If you're given debt/assets you can determine equity/assets, and the recipricol is assets/equity. (Which is your equity multiplier).

Anyway, my point is too understand what's behind the formula. I'm sure you'll do well, good luck.

 

[Aimee]

jabroni Wrote:
> It's one thing to simply memorize the Dupont
> formula, it's another to understand it.

I agree with this wholeheartedly, but I still intend to spend a good deal of time memorizing the equations. Yes, you also have to understand what they mean and how to interpret them, but I don't quite see how you can really get the concept without knowing how its calculated. I understand that the exam is less quantitative than people expect but I also feel like a) they will still ask you to do some calculations and its impossible to know which and b) knowing the equation should help you to understand the concept behind it. As with jabroni's example, if you didn't know the Dupont formula to begin with then you're not going to get anywhere on this question. At least thats how I'm approaching it.. we'll have to see how that works out