Gostudymock3

No Surprise - CFA L3 IPS Exam Questions Follow a Typical Format

The Individual investment policy statement (IPS) gets tested in essentially the same way every year on the CFA Level 3 exam. There are no excuses for not knowing what to expect.

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Gostudymock3

Determining an Investor's Willingness and Ability to take Risk

A post on how to identify the ability and willingness of an investor to take risk (a guaranteed CFA L3 exam question). 

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Gostudymock3

Linking Behavioral Finance to the Individual IPS

Coverage of the last behavioral finance reading on the CFA L3 exam. Introduces the Barnwell 2-way, Pompian, and BB&K models for classifying investors in terms of risk tolerance and how this ties into IPS questions. 

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Gostudymock3

Deadweight Loss - Challenges to Market Efficiency

Deadweight loss (DWL) is a heavily tested concept on the CFA L1 exam as it ties together an understanding of consumer and producer surplus, elasticity, and market structure. This post defines the concept, introduces necessary calculations, and goes through the potential causes of deadweight loss caused by government interventions or externalities. 

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Gostudymock3

Understanding, Identifying, and Calculating Consumer Surplus and Producer Surplus

The CFA Level 1 exam tests consumer surplus, producer surplus and associated concepts like deadweight loss extensively. This post explains the concepts, shows them graphically, and ties them into market structures and government policies in the way that the CFA L1 curriculum tends to test the economics material.  

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Gostudymock3

Individual Behavioral Biases by Investor Type

An overview of which behavioral biases, both cognitive and emotional, get exhibited by investor type. 

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Gostudymock3

The 6 Testable Emotional Biases on CFA L3

Emotional biases are those that arise from impulse, intuition, feelings, and they result in sort of personal and perhaps un-rational decision making. There are 6 biases that get tested on the CFA Level 3 exam.

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Gostudymock3

The 4 Information Processing Errors Explained

A breakdown of information processing erorrs, constituting half of the cognitive biases introduced in CFA L3's behavioral finance section.

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Gostudymock3

The Elliott Wave Theory and Long Term Market Cycles

The Elliot Wave Theory is a long-term technical explanation for market cycles.

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Gostudymock3

Oscillators & Indicators - Tools for Technical Analysis

A detailed dive into the key technical indicators used for technical analysis. 

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