The required return calculation is usually a mandatory minimum actuarial rate plus inflation and management fees.

As we know when we are hedging, we come across different sets of risk. The main one of which is basis risk. Basis risk is “the risk that offsetting investments in a hedging strategy will not experience price changes in entirely opposite directions from each other.

A 1 page Behavioral Finance Cram Guide covering Cognitive and Emotional Biases for the CFA L3 exam

You will need to practice corner portfolio problems repeatedly because they will show up on the CFA L3 exam. The good news? The math is straightforward and with practice you should be able to solve these questions quickly and accurately to save time while scoring maximum points.

This post is about how to avoid 100+ pages of pure memorization to laser in on the absolute key essentials that could get tested on the CFA Exam Level 3 Global Investment Performance Standards (GIPS).

This is a quick post that highlights previous exam weightings, then looks at the number of LOS and pages devoted to each major section, before giving our best guess at which individual readings are most important and where on the exam they are most likely to appear.

Everyone studying for the CFA allocates a different amount of study time--both in hours spent studying and in the spacing out of those hours. If you've come this far, you already know that despite these differences, the reality is that there are no real shortcuts.

We could have also called this post 'Understanding the L3 Exam' because this post is all about breaking apart the L3 exam and talking about how it should be approached. By the end of this email you'll have a clear picture of two things.

IPS questions for both individual investors and institutional investors are GUARANTEED to be on the CFA Exam. Together they may make up to 10-15% of the overall points. But this post is NOT about tackling the IPS questions themselves (for more on that see this post).

There are two main camps when it comes to studying for the CFA exams. Either you read and study the full CFA Institute curriculum or you use third party study notes to cover the material. By this stage at Level 3, you’ve probably gotten comfortable with one approach or another.