2016 CFA Program: Level I Errata

31 August 2015

To be fair to all candidates, CFA Institute does not respond directly to individual candidate inquiries. If

you have a question concerning CFA Program content, please contact CFA Institute

(info@cfainstitute.org) to have potential errata investigated. The eBook for the 2016 curriculum is

formatted for continuous flow, so the text will fit all screen sizes. Therefore, eBook page numbering—

which is linked to section heads—does not match page numbering in the print curriculum. Corrections

below are in bold and new corrections will be shown in red; page numbers shown are for the print

volumes.

The short scale method of numeration is used in the CFA Program curriculum. A billion is 109

and a trillion is 1012. This is in contrast to the long scale method where a billion is 1 million squared and a

trillion is 1 million cubed. The short scale method of numeration is the prevalent method internationally

and in the finance industry.

Volume 1

Reading 2: In Exhibit 3 (p. 172 of print), delete “Level III CFA Candidate” from the Improper

References column.

Reading 9: In the last sentence of Example 3 (p. 522 of print), the estimate for broker BB001 should

be 0.25 (instead of 25). In Equation 7 (p. 544 of print), the right-hand expression should be T, where

the T is not subscript.

Volume 2

Reading 17: In Example 4 (p. 228 of print), change the federalprovincial government deficit to

84,249 (instead of 82,249) in the question and in the next-to-last paragraph of the solution. This

changes the domestic private saving to 69.5 percent (instead of 71 percent) and the excess imports

to C$25,661 (instead of 23,661).

Reading 18: During production, an error was introduced in format. Seven (7) instances of M2 should

be changed to M2 (no superscript).

Volume 3

Reading 23: In Exhibit 8 (p. 64 of print), the bolded sub-total of 150,000 should appear under

Contributed Capital instead of Retained Earnings.

Reading 34: Candidates should delete Practice Problem 8 (p. 728) and its solution (p. 730). This

question is no longer assigned.

Volume 4

Volume 5

Reading 49: The formula in Solution 12 (p. 184 of print) should show Pt-1 as the denominator,

instead of Pt. The solution was correctly calculated; only the subscript is changed.

Reading 56: In the solution to Practice Problem #6 (top of p. 577 of print), reinvested cash flows are

at 8% instead of 6%.

Volume 6