CFA Level I Calculation Glossary

TL;DR

A public glossary of key CFA calculation terms, including annuity, bond price, duration, NPV, IRR, present value, Sharpe ratio, time-weighted return, and yield to maturity.

High-Value Terms

  • Duration measures a bond's sensitivity to interest rate changes.
  • NPV is the present value of project cash flows net of the initial investment.
  • TWR removes external cash flow timing, while MWR reflects investor cash flow timing.

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