CFA level 2 formulas Practice Test

CFA level 2 formulas Practice Test 2024-
2025
sample covariance
sample correlation coeffi-
cient
t-test for correlation coeffi-
cient

slope coefficient

intercept term
confidence interval for co-
efficient
coefficient t-test
predicted value of the de-
pendent variable
confidence interval for a
predicted value (simple lin-
ear regression only)
total sum of squares (SST)

regression sum of squares



, CFA level 2 formulas Practice Test 2024-
2025
sum of squares errors
(SSE)
coefficient of determina-
tion
standard error of estimate
F-Statistic
predicted y-value
t-test for regression coeffi-
cient
confidence interval for re-
gression coefficient
ANOVA

mean squared error

mean regression sum of
squares
F-test for multiple regres-
sion
adjusted R~2




, CFA level 2 formulas Practice Test 2024-
2025
Breusch-Pagan
Chi-square test for
heteroskedasticity
Durbin-Watson test for se-
rial correlation
AR model of order p
Mean reverting level of
AR(1)
ARCH(1) model
bid-ask spread
cross rates with bid-ask
spreads
forward premium
value of a forward curren-
cy contract prior to expira-
tion

covered interest rate parity

uncovered interest rate
parity