xCFA Level 1 Formulas Study Questions and Correct Answers 100% Verified 2024/2025

CFA Level 1 Formulas Study Questions and Correct Answers 100% Verified 2024/2025 when given D/E ratio how do you find the weight of debt? - Correct Answer D/E ratio / (1 + D/E ratio)..... so 50% D/E ratio is 50% / (1+50%, so weight of debt is 33.3% duration formula - Correct Answer change in price in % or basis points/change in rate in % or basis point what is the equation for degree of operating leverage? - Correct Answer (revenue - variance operating costs) / (revenues - variable operating costs - fixed operating costs).... same way of saying (% change in EBIT / % change in sales) what is the equation for net profit margin if you are given asset numbers? - Correct Answer ROA / Asset turnover what is the equation for financial leverage of you are given return numbers? - Correct Answer ROE/ROA if you are given asset beta aka unlevered beta, how do you calculate equity beta? - Correct Answer asset beta x [1 + ((1-tax rate) x D/E)] how do you calculate ending retained earnings? - Correct Answer Beginning retained earnings + Net income - Dividends what does Leptokurtotic mean? - Correct Answer distribution that is more peaked than normal what does Platykurtotic mean? - Correct Answer distribution that is flatter than normal what does Mesokurtotic mean? - Correct Answer distribution that is perfectly normal what is a positively skewed distribution? - Correct Answer distribution is skewed to the right, which is attractive for investors because the mean return is above the median