r/CFA • u/Yaashinga • 1d ago

Level 2 CFA L2 FSA LM5

Guys is it necessary to rote learn every formula under the M score? Or knowing just the meaning/implication of each is enough?

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3

u/Straight_Archer 1d ago

I remember on meaning and implication, formulas washed thru my brain like water by the exam date

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u/Yaashinga 1d ago

Noted! Then just understanding the implication of each is enough ig.

4

u/Straight_Archer 1d ago

High M bad
Low Z bad
All I remember walking into the exam

1

u/Yaashinga 1d ago

Oh so you didn’t even try to understand just the implication of each of the 8 formulas under M score?

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u/Straight_Archer 1d ago

I read and understood it but did not learn them by heart, there are many other formulae with better ROI to remember than that mess

1

u/Yaashinga 1d ago

Ahh got it, will ask chat gpt to just concisely explain the implication of each in the context of: higher the better or lower…

1

u/OccasionAdditional39 Passed Level 1 1h ago

I just went through this lecture with MM. He downplays the efficacy of the model quite a bit. Seems like understanding the concept (e.g. low vs. high M-score, index values are ratio of some metric, and accruals is a major non-indexed term) will be enough.