What is the single most profitable topic to study per hour invested?

CFA Level III
#1

I would guess learning to do individual investor IPS and calculate returns. Strange, cause this is a subject that is not directly taught in the curriculum, but heavily tested. The only way to learn it is through past exams.

#2

Yes. Individual ips, followed closely by institutional ips.

#3

What do you mean that the IPS stuff isn’t taught directly in the cirriculum? There are 2 long chapters dedicated to the construction and analysis of an IPS with lots of blue boxes and EOC questions.

#4

I guess he refers to calculating returns which is primarily covered in L1/L2

#5

  1. You can only learn to answer the IPS questions in the exam by practicing old exam questions. This is not easily achievable using the curriculum.

  2. The IPS material in the curriculum does not sufficiently address the specific kind of questions you will get in the exam.

Gringo and Bremen, regarding the return calculation, I mean the required return calculation in IPS questions, which is not covered in level 1 or level 2. It is only briefly covered in the level 3 curriculum, quite ambiguously, but heavily tested.

#6

It’s all covered in the CFAI text and EOC questions. Although they maybe fairly ‘over complicated’ and probably more than what is needed for the exam, they provide the finer details not found in the study notes provided by external providers.

If you take the time to really understand the EOC questions, the exam questions will be a breeze. The EOC questions will drill the mechanics into you, assuming you dont give up just because the given solutions are long and complicated.

Alternatively, you can rely on study notes by external providers (e.g. Schweser). They are a quick and dirty way to quickly grasp what is ‘necessary’ for the exams.

I used a mixture of both the CFAI text and Schweser notes.

Regardless, you will still need to practice and practice and practice to make sure you’re familiar with all the possible ways the questions may be presented so that you do not spend too much time trying to decipher what they are asking.

Note : Do pay attention to specific keywords such as 'before/after tax, ‘real/nominal’, ‘inflation’ etc.