All posts by Daniel Lambert

Substitution and Income Effect, Topics in Demand and Supply Analysis, CFA Level I, Economics

Sep 4,20

Blog article 4, Substitution and Income Effect, Topics in Demand and Supply Analysis, CFA Level 1 Economics We consider the household optimum in a two-goods world.If the price of the first good rises, then the budget line turns inwards on the x1 axis. We can then distinguish between – Overall effect, – Substitution effect and – Income effect where the …

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Monopoly, CFA Level I, Economics, The Firm and Market Structures

Sep 3,20

Blog article 3, CFA Level 1 Economics This blog post deals with an important topic from Reading 15, “The Firm and Market Structures“, namely the calculation of the optimal quantity and the optimal price in a monopoly. 1. The monopolist must first know the inverse demand function (P = a – b*Q). So if only the demand function (Q = …

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Financial Reporting and Analysis, Long-Lived Assets – an Overview

Aug 29,20

Blog article 2, Reading 26, Long-Lived Assets (2020 Curriculum) The definition of long-lived assets is that they are expected to generate economic benefits over a future period of time. We first need to differentiate between – recognition and – measurement. For measurement purposes, one must decide whether – the acquisition costs are capitalized and allocated as expenses over the term …

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Financial Reporting and Analysis, Understanding Balance Sheets – an Overview

Aug 29,20

Blog article 1, Reading 22 “Understanding Balance Sheets” of the CFA Level I (curriculum 2020) is about understanding how a balance sheet is structured, when certain things have to be accounted for (= recognition) and how they have to be valued (= measurement). The valuation is divided into initial and subsequent measurement. We will talk about the differences between current …

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