Quantitative Advice

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dmp101

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I have music background, but not much academic math background. Music is largley mathematcial, but also intuitive. I'm having a heck of a time with the Quantitative Methods. I know they are only 12% of the exam, but I feel as though a mastery of them is important for all the other aspects of the CBOK. Does anyone have any advice as to how to practice the calculations, how to better grasp the concepts? Perhaps tell me about your background and how you are taking the Quant portion...

Thanks,
Derek
 
All I can do is wish you luck.

I don't have a strong math background -- but just about everything in the quant section I know because I've seen it before as an undergrad finance major. Personally, I don't think you have to be especially gifted in math to do well on the quant section of the exam. If you've taken the GMAT or another finance certification, you probably learned process of elimination.

For exam if you're pricing a bond -- you don't have to memorize the formula. But if the interest rate increases, you know that the denominator is getting bigger. So any answer that is larger than the FV is wrong.
 
I struggled with the quant stuff too. What really helped me was building excel spreadsheets and programming the various calculations. Then I performed analysis on all types of data, over and over and over until I became a regression machine. I continued to build on the spreadsheet through levels II and III. Excel also has regression and statistical tools that allow you to easily check your logic.

Jeff
 
killamanjaro Wrote:
-------------------------------------------------------
> All I can do is wish you luck.
>
> I don't have a strong math background -- but just
> about everything in the quant section I know
> because I've seen it before as an undergrad
> finance major. Personally, I don't think you have
> to be especially gifted in math to do well on the
> quant section of the exam. If you've taken the
> GMAT or another finance certification, you
> probably learned process of elimination.
>
> For exam if you're pricing a bond -- you don't
> have to memorize the formula. But if the interest
> rate increases, you know that the denominator is
> getting bigger. So any answer that is larger than
> the FV is wrong.


thats true but i wouldnt really on that alone, you really need to know the material and the quant section serves as a basis for alot of other sections in the book.

I too do not have a very strong understanding of math but the stats in this level are pretty straight forward. i dont think there are any special tricks in getting through this section, you just have to put the time in and know the material. the only problem is that this is probably the most mind numbing section of the material.



Edited 1 time(s). Last edit at Sunday, August 20, 2006 at 09:19PM by SeanC.
 
True.

I'm spending most of my time reviewing the Quant section considering its my weakness. I think the GMAT, CTP and PRM are helping me a lot. The PRM actually explains the relationship of components of even the simplest equation rather than simply presenting an equation that you try your hardest to memorize. For me its a big help in actually knowing the material.
 
Thanks, I'll try excel. Do you have any advice as to how I should begin this practice? You just entered the equations as you would on the HP 12C, right? Then did many examples?

Thanks,
Derek
 
Professional risk management/Certified treasury professional. Actually, the CTP doesn't help much on the quant, more on the financial management side. The PRM helps big time. I usually read a chapter from the CFA book then refer to the PRM to clarify or to go in more depth.
 
If you're having problems grasping the Quant, then i would suggest something you probably don't want to hear, but...But the recommended text book and do alot of practice problems. I did my undergrad in Finance and Aced Qaunt Business Methods, but that was a while ago. I remember everything, but it all starts blending together, so I have 2 choices. Allow this to be my ONLY weak section, or buy a text book and do a bunch of practice problems.
 
Why compromise on Quant? It' not a large part of the test NOT because you can afford to skimp by, but because you are expected to know it already. Who is going to hire a PM that just "gets by" on quant.
 
Wow, thanks, that's excellent advice. You should forget the test and consider opening a CFA Level 1 counseling center for the quantitatively impaired. I'd refer many clients to you, as you know just what to do to help people.
 
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