I know many people say the key to improving their mock scores and passing the exam is to grade their own mocks as objectively as possible. Would it be a better idea to trade mocks with another Level 3 candidate that you trust?
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Grading other candidate's mocks
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Study Material Videos
Hi I am looking for videos for Study session 16 and 17 (Trading, monitoring and rebalancing and Performance Evaluation). If anyone has the videos kindly share the links as it will help me understand the topic better.
Thanks!
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is level 3 all about learning the lingo of investment?
just finished reading all 6 curriculum books, everything seems common sense, although i learned a lot.
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Summary notes to supplement MM
Hi all,
Was wondering if anyone has recommendations for summary notes to supplement MM?
For L2 I used Wiley’s 11th hour guide and it worked very well for me. This time I would like to adopt a similar approach but use a summary guide a lot earlier on in the studying process.
Thanks!
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QB for ethics
Which prep-provider QB is best to practice for ethics?
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Contingent Immunization
Hey,
In FI mandates, I understand that Contingent Immunization(CI) assume that the ptf is actively managed as long as there is a surplus.
I read a set of notes including an example that said that when if manager expects interest rates to drop, they will reduce duration of ptf(w/o regard to duration of liability).
Now, under active management, Duration(ptf) does not have to match Duration(Liability); but why does the the manager look to increase duration of ptf on the back of expectation of interest rate drop?
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CFA institute resources
Is it possible to make flash cards, review material in the CFA institute portal for Level 3 or on vital source? A candidate from Level 1 suggested the portal had flash cards but I can’t locate something similar for Level 3.
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Private Wealth - short sale against the box
In a short sale against the box technique, you borrow shares from a lender, and sell them (you are long and short on the same underlying asset - so you are hedged re price risk).
I would have 2 questions please:
1. Borrowing and selling do not happen at a very short time one after the other, right? i.e. you can defer selling and hence the capital gains tax
2. You do not have any counterparty risk, right? But does the lender of the shares have this counterparty risk? (e.g. you cannot sell the shares as desired, so you cannot deliver them back as agreed?)
Thank you!
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PV of CFs quickly on Calculator - BAII
Hi
Been a while since I’ve used the good old BAII.
How can I solve this problem the fastest way possible on the calculator. I am looking to get PV of a series of CFs.
CF1 = $100k. Increases by 3% per year.
Discount rate 2.2%.
Time Horizon= 10years.
thanks for the help
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VWAP/TWAP
Hello…
Just starting cracking the books…it’s bad…better late than never….
does anyone in the forum know if the CFA level 3 talks about VWAP and TWAP? just curious …
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Too late to start preparing fo L3 in Jan 2020?
I will have some time but it has been many years since my L2. I am not working in the investment field. Still following news etc. Not sure if 5 months is enough to cram all the contents. I understand that these contents are not topics I’ve dealt with in recent career path (more like corporate finance / internal finance team). Just want to complete the certificate.
Thank you.
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Formula vs Calculations
What is the best acceptable grading strategy /time saving for the AM exam when it is required to show the calculations to write just the calcs vs both formula and calcs.?
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reading 25: equity: how AUM, size, liquidity, turnover affect portfolio construction
Hi all,
Regarding the LOS below in Reading 25:
how assets under management, position size, market liquidity, and portfolio turnover affect equity portfolio construction decisions
I understand based on the CFAI textbook that we must consider the implicit costs + slippage costs.
Is there anything else relevant?
[PS: that chapter is badly structured and/or hard to follow]
Thanks!
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Capital markets expectations- macro
Capital markets expectations- vol 2 page 202
Loose fiscal policies (large deficits and lower taxes) increase the level of real interest rates because:
Domestic private sector is induced to save more/invest less. and additional capital must be attracted from abroad.
How does that work? We need more investments to generate economic growth right???? Loose monetary policy results in higher inflation (actual and expected).
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Exeter Asset Management Case Scenario
A is correct. Sweden’s extreme reduction in oil usage makes it less likely than other countries to experience an oil shock, one of the two most common economic shocks.
What’s the other most common economic shocks?
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Tooo many formulae
Was studying trading strategies and unlike last year, the chapter is overloaded with formulae and like has gotten ugly. Would love some suggestions as to how to approach this chapter.
Bill, would love to hear what you’ve gotta say.
Thanks in advance
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Cross-sectional and Inter-temporal consistency
I cannot wrap my head around these two terms, so can you please give me an example of these consistencies being adhered to and/or violated in real life:
- Cross Sectional consistency
- Inter-temporal consistency
These two terms pertain to formulating Capital Market Expectations.
Thank you/ and regards,
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Hedged Position Gain/Loss
I don’t get why the Beta is used in the loss to portfolio calc. Is it assuming that the index that decreases 7% has a beta of 1 whereas the beta of the equity prtu is 1.25?
Consider an investor who hedges a $75,000,000 equity portfolio using S&P 500 futures contracts. The S&P 500 futures contract stands at 1080.00 and one contract is worth 225 times the index. The beta of the portfolio is 1.25.
Assuming the index decreases by 7%, which of the following is closest to the net profit, in dollars, of the overall (hedged) position?
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No. of contracts sold to hedge position = $75,000,000 / (1080 x 225) x 1.25 = 386 contracts
Loss to portfolio = $75,000,000 x 0.07 x 1.25 = $6,562,500
Gain to futures = 386 contracts x (1080 x 225) x 0.07 = $6,565,860
Overall gain = $6,565,860 - $6,562,500 = +$3360
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Reading 28 EOC Question 13
Comment 1
Açor constructed a portfolio that is appropriate for my unique situation.
Comment 2
Açor spoke to me in my own regional language throughout the meeting.
Comment 3
Açor educated me about how my investments perform and affect my portfolio.
Which comment in Njau’s response to the client satisfaction survey best describes a soft skill exhibited by Açor?
Comment 1
Comment 2
Comment 3
C is correct. Açor’s ability to effectively educate Njau by showing Njau how her investments perform and affect her portfolio is a soft skill. Soft skills involve interpersonal relationships and include communication skills, social skills, education and coaching skills, and business development and sales skills.
.
I thought B would be the absolute correct answer……
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Duration of pay fixed receive floating swap
I have the following doubt:
on 5Y semi annual swap in which I pay fixed and receive floating on a semi annual basis, how is duration calculated for each leg?
thanks in advance
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