We continue our series of “how to” articles with an article on how to learn Portfolio management for youf CFA Exam Level 1. Some candidates say that Portfolio management is a demanding topic. On the other hand, the majority of CFA candidates are portfolio managers or portfolio managers’ assistants, and portfolio management is an unavoidable topic on many business schools. If you are the one who doesn’t like portfolio management read the following notes.
You will understand portfolio management better if you read quantitative methods before. The majority of math and statistics you need to understand for Portfolio management is very well explained in Quantitative methods. If you need help with Quantitative methods for your Level 1 CFA Exam, you can check our blog about how to deal with them. The other topics are not so demanding in terms of statistical and mathematical topics as Portfolio management.
Try to understand the basic logic behind some concepts explained in Portfolio management. You don’t need to know how to derive the ending formulas, but you need to understand the logic on which the key portfolio management concepts rely on. Your understanding will be examined on the exam.
Don’t bother yourself with complicated calculations. On Level 1 exam you will not be asked to calculate something that takes more than a couple of minutes. Just memorize key formulas and try to understand each part of it.
Finally, go through practice problems (e.g. Qbank or similar) and Mock exams before your CFA exam and you will get the idea about the usual question from that topic area.
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