Are the prerequisite topics in the exam at all, ie probability theory, options, effective interest rate. or we just have to stick to the 6 topics, Alpha, HF, Commodity&Futures, Real estate, private equity and credit derivatives ? Anyone ? many thanks…
I’d say know probability and effective interest rate really well. I have a feeling CAIA will sneak some of those questions in.
I passed level 1 in March 2009. Back then i recall there being a seperate study guide, or something, for pre-requisite material. Anyways, I used Schweser to study for the exam and they didn’t cover the pre-requisite section. I’m not sure how the layout of the current CAIA 1 textbooks are, but i don’t think that you’d be tested directly from the pre-requisite section. Just follow the LOs. That’s what’s most important. Good luck on your exams, everyone…
Only the LOS are testable. The prereq material is not being tested.
Without understanding pre-requisites you will not be able to understand concepts for LOS in CAIA exam very well. Pre-Requisites will not be tested directly. For example, you will not be able to interpret kurtosis if you don’t know what it is.