[REMOVED FOR 2023] CFA Level 3 CBT Exam - Formula Editor Tutorial

[@urielnakach4973]

All your Level III videos are outstanding in terms of structure, clearness, visualization and audio/voice. Many topics you have covered are precisely where I had knowledge gaps. Thank you so much, really appreciated a lot!

[@FabianMoa]

You're very welcome. All the best in your exam!

[@rakeshdwivedi5256]

Excellent Guidance and Nicely done example with Full Practical Demostration. Tx for it.

[@FabianMoa]

My pleasure!

[@bowenweng8064]

Really appreciate all your videos! You make everything so systematic and understandable. Thank you!

[@FabianMoa]

No problem at all 👌

[@poker_puppy]

you know its a cfa candidate when he/she comments "systematic" lol

[@alexh.4842]

Thanks Fabian for your detailed clarification! The effort & time took to use formula editor terrifies me... I think I'll take approach 3, and just use keyboard

[@FabianMoa]

Yes. I agree. All the best in your exams!

[@alexh.4842]

@@FabianMoa Merci!!

[@yenmeng]

Couldn't find the fraction button on the keyboard at all, didn't realize you could just backslash to get it. Thank you!

[@atandaisiaq4186]

you excellently did a great job. welldone

[@ggblr.airaguuya5670]

Wow, very helpful. But I think CFA writes that * is no longer accepted as a multiplier.

[@FabianMoa]

Thanks!

[@pandreou9382]

Hi Fabian, I think the formula you are using for the calculation of tax deffered is incorrect, as there is no need to add back 30%. So in short it should be = 100,000*[(1.08)^20(1-0.30)]. This is from the example in the curiculum: 1,000,000 [(1 + 0.10)20(1 − 0.20)]

[@FabianMoa]

Hi Andreou, this video was created a few years ago when the syllabus had deferred capital gains tax, which is different from the one you are referring to, which is tax deferred account (taxed at withdrawal).

[@pandreou9382]

@@FabianMoa thanks for the clarification

[@megaamann9659]

Hi Fabian, what do you mean by removed for 2023? Is there no Formula Editor in the 2023 exams?

[@FabianMoa]

No more formula editor this year

[@edmundbaroudi4938]

Thanks Fabian. I have linked it to the CFA discussion page in Candidate Resources, so probably more questions coming your way.

[@FabianMoa]

Awesome, thank you, Edmund!

[@magnificencetv7424]

my exam is in 1 month i just tested the tutorial, there's no formula editor

[@FabianMoa]

Yes, it has been removed starting from 2023

[@hudamir2679]

You explained it well but its so hard to put formulas like that this made me very worried that they have made exam more difficult will they provide paper to us for extra working

[@FabianMoa]

It's not compulsory to use the formula editor. My students don't use them as well and still passed

[@allenwu6047]

Hi Fabian, this video is great! thanks for showing this. Quick question though, can I type "x" (like the keyboard x) as multiply and "/" as divided? Thanks!

[@FabianMoa]

If you are not using the equation editor, you can use x or * or brackets. 5% x 1000 5% * 1000 5%(1000) Just avoid using x for multiply if you have an x variable in your equation

[@FabianMoa]

Hi Allen, got feedback from my students. Do not use * for multiply. Just use x

[@shawnlee332]

Hi Fabian, just wanna confirm that the RP of the segmented market should be SD * SR of the Global market in the curriculum. Hope there won't be any discrepancies.

[@FabianMoa]

If SR of segmented market is given then you should use it. If SR of segmented market is not given then use SR of global market.

[@shawnlee332]

@@FabianMoa Hi Fabian. Thanks for the reply. I’m still skeptical about it though because i have just checked schweser quicksheet and still found out that the RP for segmented is still SD * SR (global). adding on to this, there’s also “prof notes” indicating that we should use SR of Global integrated market. Of course, you are correct too because according to your video, after multiplying, you will be left with RP (segmented). I really hope that someone can clarify this discrepancy.

[@FabianMoa]

I see. The best source to clarify on this is the official CFA curriculum. The exams are set based on it afterall. You can refer to Book 2, Page 236: - Equation 5 - The paragraph right after it. - Footnote 15 Page 237, example on German shares and bonds Page 238, Example 5

[@daddygraffiti]

@@shawnlee332 I agree Shawn... I am confused now !

[@priyankabhurtun9454]

I can't see the formula editor when logging onto Prometric

[@FabianMoa]

Explore around Question 4 and 5

[@jasanivaibhav]

Hi Fabian, the video is pretty descriptive. Thank you so much! During PBT we would get some empty spaces in booklet provided by CFA for out working and deriving the answers. Similarly, will they provide some sheet for our working, where we can use pen and calculator to derive the answer, before we enter the answers on the computer?

[@FabianMoa]

Some centres give pen and paper. Some give plastic sheet with eraseable marker.

[@RanjanKumar-qf3mo]

You still have to calculate on a separate calculator after typing the variables directly ? or the formula editor does the calculation once every variable is fed in ?

[@FabianMoa]

You have to calculate using your own calculator

[@RanjanKumar-qf3mo]

@@FabianMoa Thanks for your quick reply...I guess directly working out on your calculator and writing one numeric answer is the best option...one can save time but will risk loosing out on partial credit just in case the answer is wrong...but I guess the saved time will compensate for this..how many questions will be like this in the constructed response format? I mean numerical where you can show your workings in the constructed response format?

[@wendyqxw]

Hey Fabian, I believe you have seen the pass rate of March Lv1 2021 released yesterday. Any thoughts you want to share? Also could you also talk about the learning strategy if the low pass rates become a normal for Lv2 and Lv3?

[@FabianMoa]

Hi Wendy, I'm waiting for L2 and L3 results to be released before I share my thoughts.

[@wendyqxw]

@@FabianMoa thanks 🙏🏻

[@FabianMoa]

Wendy, if you see this, CONGRATULATIONS!!! Heard the wonderful news and glad that my videos helped in some way. And THANKS for the coffee! 😁😁😁

[@wendyqxw]

@@FabianMoa thank you! I really think more students should be aware of this excellent channel 👍🏻👍🏻

[@hudamir2679]

Do u expect students could get better grades or score even less with this format

[@FabianMoa]

With Computer based format, my students can type their answers faster (than writing) and can easily change answers. I expect more to pass if they have prepared adequately

[@hudamir2679]

@@FabianMoa will they provide us paper for working or writing values

[@FabianMoa]

@@hudamir2679 Depends on the exam centres. Some give white A4 papers + pen. Some give laminated paper + eraseable markers

[@hudamir2679]

We can write formula on paper so that we can remember it while solving but I guess during this process I would forget the formula

[@CJShackleton]

Could the CFA Institute pick a more garbage interface for the formula editor and the format of this exam as a whole? Lets give candidates less time and make them show their work in the most cumbersome manner imaginable. What a complete and utter embarrassment. How could they possibly botch this exam execution two years in a row? Unbelievable.!

[@FabianMoa]

It's not compulsory to use the formula editor in the exams. And it turns out that for some questions, you can enter the numerical answer (with no space to show workings)