CFA Level 1 Notes & Cheat Sheets

59 Modules, Every Key Concept

Condensed study notes for every CFA Level 1 module — key concepts, formulas, and decision frameworks distilled into quick-reference cheat sheets.

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314

Key Concepts

163

Formulas

Decision Frameworks

Quick answer

What should a CFA Level 1 cheat sheet contain?

A useful CFA Level 1 cheat sheet holds one page per module: the formulas, the definitions you keep confusing, the decision rules, and your own mnemonics — nothing you already know cold. CFA Master's cheat sheets are editable, so you write your own wording into each module as you study rather than revising from someone else's summary.

One cheat sheet per module — 59 in total across 10 subjects
Editable: you add your own concepts, formulas, and mnemonics
Rule of thumb: if you already know it cold, leave it off the sheet
Built as you go, module by module, not written from scratch at the end

All 10 Subjects

Quantitative Methods

11 modules

60 concepts43 formulas14 decisions

Economics

8 modules

45 concepts18 formulas8 decisions

Financial Statement Analysis

9 modules

46 concepts31 formulas9 decisions

Corporate Issuers

7 modules

39 concepts14 formulas7 decisions

Equity Investments

6 modules

32 concepts16 formulas4 decisions

Fixed Income

5 modules

22 concepts17 formulas4 decisions

Derivatives

2 modules

10 concepts10 formulas2 decisions

Alternative Investments

3 modules

14 concepts5 formulas2 decisions

Portfolio Management

3 modules

16 concepts9 formulas3 decisions

Ethical & Professional Standards

5 modules

30 concepts5 decisions

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Rates and Returns

Quantitative Methods — Module 1. Full cheat sheet below.

Key Concepts

Interest Rate Components

Nominal rate = Real risk-free rate + Inflation premium + Default risk premium + Liquidity premium + Maturity premium.

Holding Period Return (HPR)

Total return earned from holding an asset over a single period, including price change and income.

Arithmetic vs Geometric Mean

Arithmetic mean is the simple average of returns; geometric mean accounts for compounding. Geometric ≤ Arithmetic always.

Harmonic Mean

Used for averaging ratios like P/E or dollar-cost averaging. Always ≤ Geometric mean ≤ Arithmetic mean.

Money-Weighted Return (MWR)

IRR of all cash flows; sensitive to timing and size of external cash flows. Reflects investor experience.

Time-Weighted Return (TWR)

Geometric mean of sub-period returns; not affected by external cash flows. Reflects manager performance.

Continuously Compounded Return

r_cc = ln(1 + HPR). Allows additive compounding across time periods.

Gross vs Net Return

Gross = before management fees; Net = after all fees. Pre-tax vs after-tax returns also critical.

Formulas

Holding Period Return

HPR = (P₁ - P₀ + D₁) / P₀

Where: P₀ = beginning price, P₁ = ending price, D₁ = income/dividend

Geometric Mean Return

R_G = [(1+R₁)(1+R₂)...(1+R_n)]^1/n - 1

Where: R_i = return in period i, n = number of periods

Harmonic Mean

X̄_H = n / Σ(1/X_i)

Where: n = number of observations, X_i = individual values

Annualized Return

R_annual = (1 + R_period)^c - 1

Where: c = number of periods per year

Continuously Compounded Return

r_cc = ln(1 + HPR) = ln(P₁/P₀)

Where: ln = natural logarithm

Real Return (exact)

(1 + R_nominal) = (1 + R_real)(1 + π)

Where: π = inflation rate

Decision Frameworks

Which mean return to use?

Use when:

+Arithmetic mean: for forward-looking expected single-period returns
+Geometric mean: for historical multi-period compound performance
+Harmonic mean: for dollar-cost averaging or averaging P/E ratios

Avoid when:

-Arithmetic mean when evaluating past compounded growth
-Geometric mean for expected future single-period estimates

Money-weighted vs Time-weighted return?

Use when:

+MWR when evaluating the investor's actual experience
+TWR when evaluating the portfolio manager's skill

Avoid when:

-MWR for manager comparison (distorted by client cash flows)
-TWR when investor controls timing of cash flows

All Cheat Sheets by Subject

Quantitative Methods

11 modules

Rates and Returns

8 concepts · 6 formulas · 2 decisions

Free preview

Time Value of Money in Finance

7 concepts · 7 formulas · 2 decisions

Statistical Measures of Asset Returns

7 concepts · 6 formulas · 2 decisions

Probability Trees and Conditional Expectations

6 concepts · 4 formulas · 1 decisions

Portfolio Mathematics

5 concepts · 4 formulas · 1 decisions

Simulation Methods

4 concepts · 2 formulas · 1 decisions

Estimation and Inference

5 concepts · 3 formulas · 1 decisions

Hypothesis Testing

5 concepts · 3 formulas · 1 decisions

Parametric and Non-Parametric Tests of Independence

3 concepts · 3 formulas · 1 decisions

Simple Linear Regression

5 concepts · 5 formulas · 1 decisions

Introduction to Big Data Techniques

5 concepts · 1 decisions

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Economics

8 modules

The Firm and Market Structures

7 concepts · 6 formulas · 1 decisions

Understanding Business Cycles

5 concepts · 1 decisions

Fiscal Policy

6 concepts · 3 formulas · 1 decisions

Monetary Policy

6 concepts · 3 formulas · 1 decisions

Introduction to Geopolitics

5 concepts · 1 decisions

International Trade

5 concepts · 1 formulas · 1 decisions

Capital Flows and the FX Market

5 concepts · 1 formulas · 1 decisions

Exchange Rate Calculations

6 concepts · 4 formulas · 1 decisions

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Financial Statement Analysis

9 modules

Introduction to Financial Statement Analysis

6 concepts · 1 decisions

Analyzing Income Statements

6 concepts · 6 formulas · 1 decisions

Analyzing Balance Sheets

5 concepts · 4 formulas · 1 decisions

Analyzing Statements of Cash Flows I

6 concepts · 3 formulas · 1 decisions

Analyzing Statements of Cash Flows II

3 concepts · 5 formulas · 1 decisions

Analysis of Inventories

5 concepts · 4 formulas · 1 decisions

Analysis of Long-Term Assets

5 concepts · 4 formulas · 1 decisions

Topics in Long-Term Liabilities and Equity

4 concepts · 2 formulas · 1 decisions

Analysis of Income Taxes

6 concepts · 3 formulas · 1 decisions

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Corporate Issuers

7 modules

Organizational Forms, Corporate Issuer Features, and Ownership

6 concepts · 1 decisions

Investors and Other Stakeholders

5 concepts · 1 decisions

Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits

5 concepts · 1 decisions

Working Capital and Liquidity

5 concepts · 6 formulas · 1 decisions

Capital Investments and Capital Allocation

6 concepts · 4 formulas · 1 decisions

Capital Structure

6 concepts · 4 formulas · 1 decisions

Business Models

6 concepts · 1 decisions

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Equity Investments

6 modules

Market Organization and Structure

7 concepts · 3 formulas · 1 decisions

Security Market Indexes

4 concepts · 2 formulas · 1 decisions

Market Efficiency

6 concepts · 1 decisions

Overview of Equity Securities

5 concepts · 3 formulas

Company Analysis: Past and Present

4 concepts · 2 formulas

Equity Valuation: Concepts and Basic Tools

6 concepts · 6 formulas · 1 decisions

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Fixed Income

5 modules

Fixed-Income Instrument Features

4 concepts · 2 formulas · 1 decisions

Fixed-Income Cash Flows and Types

4 concepts · 3 formulas

Fixed-Income Bond Valuation

4 concepts · 4 formulas · 1 decisions

Interest Rate Risk and Duration

5 concepts · 5 formulas · 1 decisions

Credit Risk and Credit Analysis

5 concepts · 3 formulas · 1 decisions

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Derivatives

2 modules

Derivative Instruments and Markets

5 concepts · 5 formulas · 1 decisions

Derivative Pricing and Valuation

5 concepts · 5 formulas · 1 decisions

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Alternative Investments

3 modules

Alternative Investment Features, Methods, and Structures

5 concepts · 3 formulas · 1 decisions

Private Capital: Equity and Debt

4 concepts

Real Estate, Infrastructure, and Hedge Funds

5 concepts · 2 formulas · 1 decisions

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Portfolio Management

3 modules

Portfolio Risk and Return: Part I

6 concepts · 4 formulas · 1 decisions

Portfolio Risk and Return: Part II

5 concepts · 5 formulas · 1 decisions

Portfolio Management Overview and Planning

5 concepts · 1 decisions

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Ethical & Professional Standards

5 modules

Ethics and Trust in the Investment Profession

6 concepts · 1 decisions

Code of Ethics and Standards of Professional Conduct

6 concepts · 1 decisions

Guidance for Standards I–VII

8 concepts · 1 decisions

Introduction to GIPS

5 concepts · 1 decisions

Ethics Application

5 concepts · 1 decisions

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Frequently asked questions

Can you bring a cheat sheet into the CFA exam?

No. The CFA exam is closed-book. You may bring only an approved calculator (TI BA II Plus or HP 12C). Cheat sheets are a revision tool for the weeks before the exam.

Should you make your own CFA cheat sheets or use pre-made ones?

Make your own, using a pre-made sheet as the skeleton. The act of deciding what belongs on the page is most of the learning — that is why CFA Master's cheat sheets are editable rather than fixed.

How long should a CFA cheat sheet be?

One page per module is the practical limit. If it grows past that, it has stopped being a revision aid and become a second set of notes.

Read the Full Cheat Sheets

Unlock all 59 cheat sheets with interactive flashcards, quizzes, mind maps, and a full 180-question mock exam.

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