CFA Level 1 Key Vocabulary
Essential terms and definitions you must know before exam day.
Key Vocabulary
MPS
Minimum Passing Score — the passing threshold set by CFA Institute after each exam.
GIPS
Global Investment Performance Standards — standardized way to report investment firm performance.
DDM
Dividend Discount Model — values a stock as the PV of future dividends.
Beta
Measure of a security's systematic risk relative to the market portfolio.
Vocabulary Study Tips
- 1.Ethics is the highest-weighted topic — start and end your studies with it.
- 2.Use the CFA Institute curriculum or SchweserNotes; don't rely on third-party alone.
- 3.Do 1,000+ practice questions before exam day.
- 4.Master the BA II Plus calculator shortcuts (NPV, IRR, TVM, statistics).