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. If you found this useful, subscribe for more CFA + quant content. 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