CFA Journey

hello, I’m starting a new journey in my life - that is CFA
Today on 14 Feb, when everyone is celebrating Valentine’s Day let’s start our prep to become CFA Charterholder

in this journey, every day (I will try) to post a message regarding what I have covered during the day - it is a diary where I will post what I have studied during the day, you must be wondering why you should follow me or you must be thinking am in insane why I’m posting my journey online, so here are the reason

• I want job

• I’m a full-time student who wants to build a personal brand

• A lot of my friends need a summary to revise at the last minute

• I will try to add a Google Drive link in which I will add questions (TBH- I will do Chat GPT)
  
  So let’s begin

we will start with Quants, as we know we have 2 things

1. Pre- Requisite

2. Curriculum

firstly we will begin with the Pre-Requisite

Chater -1 Interest Rates, Present Value, and Future Value

what we will learn-

1. Interest Rates

2. FV and Pv Problems

3. Ordianry, due, Perpetuity, and uneven cashflow

4. EAR and SAR

#1there are 3 types of interest rates

1. Required Rate of Return

2. Discount Rate

3. Opportunity Cost

Interest Rates = Nominal RF + Risk Prenium

What is Nominal RF ? = Real RF+ Inflation Prenium

what is Risk Premium?

there are 3 different types of risk premium

1. Default risk premium

2. Liquidity risk premium

3. Maturity risk premium

Nominal Rf Rate= Real Rf + Inflation Premium

Real Risk Adjusted Rate = Real Rf+ Risk Premium ( which includes Deafult+ Liquidity+ maturity)

#2 Cashflow Patterns

1. One time

2. Annuity —> a) ordinary, b) Due

3. Uneven Cashflow

4. Perpetual Cashflow

#cfa #investing #finance