This post is all about breaking down the L3 exam and giving you a holistic understanding of what it is all about.

A review of how the CFA Level 1 exam tests arbitrage and why it matters for pricing futures and forward contracts. 

There's a right way and a wrong way to study for the CFA exam. Here's what not to do.

Within the CFA Level 1 curriculum understanding portfolio risk and return is non-negotiable. And that knowledge starts with understanding the Capital Asset Allocation Line (CAL) and its similarities and differences to the Capital Market Line (CML) and the Securities Market Line (SML).

For the CFA Level 1 exam you need to have a firm grasp on how to calculate both basic and diluted EPS under both simple and complex capital structures. Expect at least a few exam questions: one requiring the use of the Diluted EPS equation, another using the basic EPS calculation, and perhaps others testing your general understanding of dilutive vs. non-dilutive securities. 

In aggregate, not that much. Within two sections, however, quite a bit is different. Read on to get all the intel you need.

The CFA level one exam will have several questions around asset-backed securities (ABS), mortgage-backed securities (MBS), and collateralized debt-obligations (CDOs). This post defines each, introduces tranching, and talks about all the key calculations you need to know for the L1 exam. 

Within the CFA L3 exam's focus on concentrated positions, the stages of equity holding explain how a business owner or corporate executive might obtain wealth through the equity of a single company and how their psychology around their acceptance of the concentrated position and its higher risk depends on the degree of control and attachment they have over the business. 

Diversifying a concentrated or low basis position is an often-tested section of the CFA level 3 exam. This post covers the nuances of the different strategies from a tax, wealth, and behavioral perspective