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All posts for the day April 11th, 2013

Inflation in Required Rate of Return – to Tax, or Not to Tax?

Posted by Bill Campbell III, CFA on April 11, 2013
Posted in: Level III Private Wealth Management.

A common question that plagues many Level III candidates is how to treat inflation when calculating a nominal, before-tax required rate of return for an individual investor: do you add inflation to the real after-tax return, then compute the before-tax return, or do you start with the real after-tax return, compute the before-tax return, then […]

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Applying Level I Economics to Your Level I Studying

Posted by Bill Campbell III, CFA on April 11, 2013
Posted in: Level I General.

The most important topic in Econ is marginal revenue product: the idea that you maximize your profit (minimize your cost) when the ratio of marginal revenue product to input price for all inputs is the same: \[\frac{MRP_{1}}{P_{1}} = \frac{MRP_{2}}{P_{2}} = \cdots = \frac{MRP_{n}}{P_{n}}\] That is, it’s the most important if you can apply it to […]

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CFA® Level I Membership

This will give you access to this and all other articles at that membership level.