All posts by Daniel Lambert

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 …

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 = …

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 …

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 …