CFA Level I BOARD EVALUATION 2026 GUARANTEED PASS ANSWERS GRADED A+

CFA Level I BOARD EVALUATION 2026
GUARANTEED PASS ANSWERS GRADED A+

● indirect method. Answer: Net Income + change in D&A + change in
NWC - profit from sale of fixed assets.


CA that decreased = add back
CL that decreased = subtract


● Safety First Ratio (SFRatio). Answer: (Expected Return on Portfolio -
Min. Acceptable Return ) / Std Dev of Portfolio


● Coefficient of Variation (CV). Answer: the standardized measure of
the risk per unit of return; Standard Deviation / Mean


● Income Tax Expense Formula. Answer: Taxes Payable + Change in
DTL - Change in DTA


● inventory turnover formula. Answer: cost of goods sold/average
inventory


● Days Inventory Outstanding. Answer: 365/inventory turnover

, ● asset turnover formula. Answer: Sales/Total Assets


● F-test formula. Answer: s1^2/s2^2


Variance larger/Variance smaller


● Compound annual growth rate. Answer: CAGR = (Ending Value /
Beginning Value) ^(1/#of years) - 1


● Current Yield Formula. Answer: annual coupon/current price


● Beta formula. Answer: B= Cov(asset return, market return)/variance
of market return


● Covariance formula. Answer: StDev(a) * StDev(b) * Correlation
Between the Two


● standard deviation formula. Answer: the square root of the variance


● Duration Gap. Answer: macaulay duration - investment horizon


● Modified Duration. Answer: Similar to Macaulay but takes into
account YTM;