On June 1, thousands of Wall Streeters will take the Charted Financial Analyst (CFA) exam and many of them are probably freaking out right about now.
Consisting of three levels, the CFA is considered to be the most difficult test on the Street with fewer than 20 percent of candidates passing all three on the first try.
What's more is the average test-taker spends a solid five to six months preparing for the CFA.
There are several formulas a candidate must know to pass. However, there are way too many formulas to be included in one small slideshow.
That being said, we've included 9 formulas candidates are likely to need on any of the three levels of the CFA exam.
Best of luck to all the test takers out there!
Reporter Ben Duronio contributed to this feature.
DISCLAIMER: We don't claim to be experts in offering exam advice.
Capital Asset Pricing Model (CAPM): Attempts to explain the relationship excess market risk and expected return.
Source: CFA Institute, Wikipedia
Black-Scholes Model: Applies theoretical physics when pricing options.
Source: Investopedia, Wikipedia
Duration With Convexity Adjustment: Duration is the average time until all cash flows from a bond are delivered. The convexity adjustment helps determine the change in price that is not explained by duration.
Source: Investopedia, My Swiss Company
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