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Level III

What is your study method?

Just curious what is your method of studying for L3? For both L1 and L2, I would basically start reading from Schweser and write down/summarize any information that I think is new to me or is not common sense.

issue debt from holdco

General question..

Is it better to issue debt out of a holding company or an operating subsidiary?

would the debt be rated higher if issued from holdco or opco??

Review Period Before Mocks

Hey everyone,

Since most are coming to the end of their first pass through the material, I thought we could throw out our strategies for the last month or weeks before we all start ripping through some mocks.

high volatility/ high risk asset and optimal corridor


For EOC qns 2 reading 17(principles of asset allocations) the ans states that higher-risk assets should hve a wider corridor to avoid frequent rebalancing.

However, in reading 32 ( monitoring and rebalancing in exhibit 8, under asset class volatility, it states higher the volatility of a given asset class, narrower the optimal corridor.

Isn’t high-risk asset = high volatilty asset class?  Am I missing anything here? If not, can someone advise how do we interpret the difference between these 2 situations? Thanks!!

Behavioural Biases List

There are a lot of biases in CFA Level 3. I tried to list them all. Did I miss any?

Cognitive Errors

Belief Perseverance Biases 1. Representativeness Bias 2. Illusion of Control Bias 3. Conservatism Bias 4. Confirmation Bias 5. Hindsight Bias

Information-Processing Biases

1. Framing Bias 2. Anchoring and Adjustment Bias 3. Mental Accounting Bias 4. Availability Bias

Emotional Biases

1. Loss Aversion Bias 2. Overconfidence Bias 3. Self-Control Bias 4. Endowment Bias 5. Regret Aversion Bias 6. Status Quo Bias

Starting prep now, pls advise

I know it’s too late to start preparing for L3, but still I would like to go for it probably as practice for the next year.
Any tips on how best to prepare, say with 2 hrs on weekday and 12 hrs total on weekend?


Show calculations

Do you have to show the formulas too?  For instance, if the question asks you to Show Calculations and you are solving for the Sharpe Ratio, with R=15%, RFR = 3% and SD = 20, is it acceptable to just show the calculation

SR = (15-3)/20 = 0.60  or,

do you have to show the forumla

SR = (Rp - RFR)/SD