Every Formula on the CFP Exam Sheet, Explained
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Every Formula on the CFP Exam Sheet, Explained
11 603 просмотра · 1 год назад
Advise Wise
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11 603 просмотра · 1 год назад
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In this comprehensive guide, I break down EVERY formula on the CFP® Board's official formula sheet - explaining what each formula means, how they're tested on the CFP exam, and critical traps to avoid. We talk about which formulas appear most frequently and share exactly how to recognize when to apply each one.
⏰ TIME STAMP
0:00 - How Formulas are Organized
1:37 - Formula 1: Gordon Growth Model
3:13 - Formula 2: Gordon rearranged for Rate of Return
4:23 - Formula 3: Covariance
6:20 - Formula 4: Portfolio Standard Deviation
9:01 - Do I need to memorize the equations?
10:10 - Formula 5: Beta
11:24 - Formula 6: Standard Deviation
13:35 - Formula 7: Standard Deviation from a Sample
14:08 - Formula 8: CAPM
15:46 - Formula 9: Jensen's Alpha
16:25 - Formula 10: Treynor Ratio
17:20 - Formula 17: Sharpe Ratio
18:17 - Formula 11: Bond Duration
19:38 - Formula 12: Change in Bond Price and Yield
20:18 - Formula 13: Information Ratio
21:32 - Formula 14: EAR (effective annual rate)
22:14 - Formula 15: TEY (tax equivalent yield)
23:40 - Formula 16: AM (arithmetic mean)
24:17 - Formulas 18 & 20: GM (geometric mean)
25:20 - Formula 19: HPR (holding period return)