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CFA Glossary of Terms and Formulas

Use this glossary to search CFA terms, formulas, and finance concepts while you study. Browse alphabetically, search for a specific term, or review short definitions across the CFA Program.

This page is built for candidates preparing for CFA Level I, Level II, or Level III.

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Rule of 72

Level I

The principle that the approximate number of years necessary for an investment to double is 72 divided by the stated interest rate.

A level of inventory beyond anticipated needs that provides a cushion in the event that it takes longer to replenish inventory than expected or in the case of greater than expected demand.

Rules for portfolio selection that focus on the risk that portfolio value will fall below some minimum acceptable level over some time horizon.

Sales

Level I

Generally, a synonym for revenue; “sales” is generally understood to refer to the sale of goods, whereas “revenue” is understood to include the sale of goods or services.

COMMON QUESTIONS

FAQs About KeyPoint Learning's CFA Glossary

A CFA glossary is a reference list of terms, formulas, and finance concepts that appear across the CFA Program. It helps candidates review key ideas while studying for Level I, Level II, or Level III.

CFA Glossary

This glossary is designed to support candidates across the CFA Program. Where level information is available, terms can be labeled by CFA Level I, Level II, or Level III.

CFA Glossary

Yes, formula-related terms may be included in the glossary. For a more focused formula review, use the CFA Formula Sheet resource.

CFA Glossary

No. It is better to understand important terms in context than to memorize every definition by itself. Focus on how each concept works, where it appears in the curriculum, and how it may be tested.

CFA Glossary

You can explore KeyPoint Learning’s CFA resources for study planning, calculator guidance, formulas, GIPS Standards, and CFA Program information.

CFA Glossary
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