CFA Level 1: Rates & Returns Explained (Using Real Life Examples)

CFA Level 1: Rates & Returns Explained

Most candidates try to memorize returns formulas.
That’s exactly why they struggle on exam day.

In this video, I break down the Rates & Returns chapter from CFA Level 1 the way it’s actually used in practice — through a quant lens and real-world examples.

We go beyond definitions and focus on how these concepts behave in real portfolios.

What you’ll learn:

* The difference between nominal, real, and inflation-adjusted returns
* Why geometric vs arithmetic returns matter (and when each breaks)
* How gross, net, pre-tax, and after-tax returns actually impact investors
* The exact intuition behind return formulas (so you don’t memorize blindly)
* How CFA concepts translate into real portfolio decisions

Why this matters:
Returns are the foundation of everything in finance.
If you misunderstand them, you misprice risk, misread performance, and make bad investment decisions.

This is the framework you need — both to pass the CFA exam and to think like a real investor.

About Code&Kapital
Data-driven finance. Institutional thinking. No fluff.
I break down complex financial concepts using real-world applications and quant intuition.

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0:00 - Introduction
1:05 - Interest Rates
7:25 - Holding Period Return
10:30 - Multi Period Return
20:00 - Money Weighted vs. Time Weighted Returns
27:39 - Annualization
30:50 - Other Return Measures
34:30 - Outro

Видео CFA Level 1: Rates & Returns Explained (Using Real Life Examples) канала Code & Kapital