formula-sheet
CFA Level I Quantitative Methods Formula Sheet
Public formula sheet for CFA Level I quantitative methods calculations.
TL;DR
Use this Quant formula sheet for TVM, statistics, probability, hypothesis testing, and regression review.
Formula Reference
Holding period return
HPR = (ending value - beginning value + cash flow) / beginning valueInclude income received during the period.
Geometric mean
[(1 + r1)(1 + r2)...(1 + rn)]^(1/n) - 1Best for compounded multi-period returns.
Coefficient of variation
CV = standard deviation / meanRisk per unit of expected return.
Confidence interval
estimate +/- reliability factor x standard errorUse t-statistics when population variance is unknown.
BA II Plus Keystrokes
- Use TVM keys for compounding.
- Use DATA/STAT for mean and standard deviation.
- Use STO/RCL for probability-weighted values.
Worked Example
- For returns of 4 percent, 8 percent, and -2 percent, geometric mean = (1.04 x 1.08 x 0.98)^(1/3) - 1.
- Result is about 3.27 percent.
Common Mistakes
- Using arithmetic mean for compounded performance.
- Confusing standard deviation and standard error.
- Applying population variance when sample variance is required.
Related Guides
- CFA Level I Quantitative Methods Calculation Guide - Formulas, examples, and calculator workflows for CFA Level I quantitative methods.
- Time Value of Money Calculations on the BA II Plus - CFA Level I TVM reference for present value, future value, annuities, perpetuities, and BA II Plus inputs.
- Time-Weighted vs Money-Weighted Return - Compare TWR and MWR with formulas, examples, and CFA Level I interpretation rules.