How to Master Quantitative Methods in CFA Exam

About Quantitative Methods

For those people who are making a great attempt to become CFA Charter Holders, I am sure that you will have much difficulty learning and memorize a large amount of knowledge in a short period. However, you do not need to worry too much since I will give you my valuable experience so that you can have an overview of what you need to do at this moment. Particularly, among all of the subjects in CFA Exam, I think that many people may get stuck with Quantitative Methods, and that is why I am going to share my tips on this subject for you.

quantitative methods

Overview of Quantitative Methods

When it comes to CFA Exam, there is a total of three levels that you have to go through before officially becoming a CFA Charter Holder. Within each level, you have to learn many similar subjects with the different focus. Therefore, it is very important to identify the key point in each subject in order to have the best preparation for your upcoming exam.

In particular, with Quantitative Methods, I remember that you will just meet this subject at CFA Level 1 and 2. As a result, you do not need to go over it at the final level, which is considered as the important point that you have to remember clearly so that you do not waste your time and efforts at the same time.

How to Master Quantitative Methods

Going to the next point, I am going to introduce you the curriculum as well as the effective methods that can help you master Quantitative Methods during your CFA level 1 and 2. By this way, you can achieve the perfect outcome for your entire exam and quickly get access to the success.

CFA Level 1

As you may know, Quantitative Methods accounts for approximately 12 percent of the total topic weight in your CFA Level 1 Exam. Therefore, I think that this subject is one of the most significant factors that can decide your final result.

Therefore, you need to have the effective approach to learn this module. Otherwise, you will absolutely spend a great amount of time without any notices. Firstly, Quantitative Methods aims to show you the basic concepts related to time value of money, discounted cash flow, market returns as well as probability concepts.

When seeing any theories, you need to read them at least three times in order to absorb them into your head as soon as possible. Moreover, based on my previous experience, linking all of the theories into practical situations will be a great help that can maximize your memory without wasting much time.

After learning the whole session, you need to have an excellent understanding of the time value of money since you will always meet this term throughout this subject. Knowing how to calculate the time value of money will support your ultimate decision when managing your business together with efficiently estimate the fair value of numerous financial instruments.

Another concept that you need to fully understand is the market return and risk which will assist your business to grow substantially in the long run. By mastering all of these items, you can make the best final decision without any problems for sure.

With anyone who has the financial and economic background, I think that you will not have much difficulty in this subject. Instead, this will be a chance to review your previous knowledge that you may forget after a long time.

Furthermore, after understanding the theories, I highly recommend that you should do as many practice questions as possible. By doing this, you can know how to use the calculator and allocate your time for the calculation properly. Hence, you will not get confused about any matter when entering your actual exam anymore.

CFA Level 2

First of all, I would like to congratulate those people who can overcome the CFA Level 1 and go to this level. However, you have to cope with another competition with some new elements that you have to understand.

For anyone who prepares to study Quantitative Methods in level 2, I am sure that you will face more challenges since the module is more difficult than level 1. Thus, you will easily get marks anymore unless you have a stable base of general theories as well as the important models.

According to my opinion, there is a diversity of significant concepts that you have to master such as the correlation, regression model, hypothesis testing along with the confidential interval. Moreover, you have to know how to both use and explain the information existed in the ANOVA table.

The most important part is the time-series data that many people will be afraid, and I am also the one who used to face this problem. However, you can create the mind map by yourself so that you can remember this aspect quickly and effectively. On the other hand, you can learn it with your friends, which will be a lifetime opportunity to help you discuss and identify the difficult areas immediately.

If you have passed the CFA Level 1 and continued with level 2 at this moment, you can realize the distinctive point between these two for sure. In particular, for each subject in level two, you will be able to meet fewer topics than level 1. Nevertheless, you have to investigate the issues more thoroughly so that it will make you more stressful and tired.

Although you do not need to understand as many aspects as level 1, you will have to understand each field deeply. As a result, knowing all of the key points is necessary, and do not ignore anything because you may lose your valuable point in the upcoming exam.


In general, I hope that all of the information in my article regarding Quantitative Methods in CFA Exam will be able to support your study time. However, in case you need any advice or suggestions, please feel free to keep in touch with me anytime.

Leave a Reply

Your email address will not be published. Required fields are marked *