“A survey of behavioral finance” The first few pages of the reading cover the 3 LOS’s for the reading. The chapter then goes on and on over behavioural finance theories and models. Cant push myself to get through those 30 pages and am really wondering why its not optional… any inputs??
are you mad? nothing on the curriculum is optional by the way its one of the most interesting and useful parts of the entire CFA curriculum
It was putting my asleep too. I skipped to the Individual Port. Mgmt that is later in the book. It was much better to read in my opinion.
okie, so will have to do it I guess. But how come there’s no mention in the LOS about the whole prospect theory and other things from that chapter… I can see the goodness in the first part of the chapter about noise traders and way in which securities can be mispriced (reasons for EMH may not be true)
guys I have the impression that you are slightly underestimate the L3 exam but its early in the year and you have plenty of time having passed 3/3 may I suggest that you take this exam very very seriously otherwise you are wasting your time try and search this forum, there are many posts with respect to how to prepare for L3 (one of the best is by Cat060) and more specifically about Beh Finance if you have specific questions we are here to helpg
Yes L3 is hard. Having failed in 2007 I realise how important it is to remember so much of the minute detail in all the theories. I mixed up some of the behavioural finance stuff and lost lot of marks in the am session. The optional parts are specifically marked in the new CFAI texts in ethics the initial portions are marked optional.
I totally agree with Bambi. I found the whole session on “Behavioural Finance” very interesting. It is a shame that it has not got any End of Session questions.
be careful there is some Behavioural Finance “hidden” in the Economics reading and the difference is tiny, both BH concepts showed up on the exam minutiae minutiae minutiae
Can anyone give an e.g. of what kind of a question can come up from this reading ? I am just beginning to flip through the pages and feel that the book goes on and on about all the experiments that various people did, and what was the % distribution in the results. It is very interesting but I can’t visualize how this will be questioned ? I have just read the first few pages and I already find myself struggling…
Bambi Wrote: ------------------------------------------------------- > guys I have the impression that you are slightly > underestimate the L3 exam > but its early in the year and you have plenty of > time > having passed 3/3 may I suggest that you take this > exam very very seriously otherwise you are wasting > your time > try and search this forum, there are many posts > with respect to how to prepare for L3 (one of the > best is by Cat060) and more specifically about Beh > Finance > if you have specific questions we are here to > helpg Lady Bambi: I had the same question as vir_vict. I agree with him that the beginning sections focus on BH, but then the reading veered off in a direction not mentioned in LOS. Help, please.
After those strong words from the Bambi, I pushed myself to go through the chapter. The ideas are definitely very interesting but it makes me nervous because No LOS relating to any of those behavioral justifications but the reading is not optional either…what is CFAI conveying…looks very grey.
Wolly Wrote: ------------------------------------------------------- > Can anyone give an e.g. of what kind of a question > can come up from this reading ? I am just > beginning to flip through the pages and feel that > the book goes on and on about all the experiments > that various people did, and what was the % > distribution in the results. It is very > interesting but I can’t visualize how this will be > questioned ? I have just read the first few pages > and I already find myself struggling… on the exam you might get a little “story” of somebody’s behaviour or just a description and might then be asked how it is called and what is good/bad about it or you might be told the specific term and then you have to define the behaviour pattern and its consequences
vir_vict Wrote: ------------------------------------------------------- > After those strong words from the Bambi, I pushed > myself to go through the chapter. The ideas are > definitely very interesting but it makes me > nervous because > > No LOS relating to any of those behavioral > justifications but the reading is not optional > either…what is CFAI conveying…looks very > grey. Prospect theory shows up in the Reading 14, though briefly. Maybe other theories will show up in later readings, who knows. But I would have liked CFAI to explicity point out this fact in LOS.
abacus Wrote: But I would have liked > CFAI to explicity point out this fact in LOS. and you have not even seen the exam questions - as far away from explicit as possible !!! but dont surrender now, the L3 curriculum is interesting
damn i cant believe some of you guys are already on reading 13 …i havent even registered yet …n i just realised i missed the early registration deadline …
I hear early registration deadline has been extended to Oct 5th…
is it posted on the cfa site …???
Rudeboi Wrote: ------------------------------------------------------- > damn i cant believe some of you guys are already > on reading 13 …i havent even registered yet …n > i just realised i missed the early registration > deadline … Rudeboi: Don’t worry. I have skipped Ethics.
Thank you for your inquiry. You are correct, and we will be issuing a correction as follows: • Study Session 3, Reading 13: The text beginning with Section 3 (p. 92) through the end of the reading should be marked “optional.” These 42 pages are not assigned. We appreciate your bringing this to our attention. Regards, XXXXXX CFA Institute ________________________________________ From: Sent: Tuesday, September 25, 2007 9:10 AM To: CFA Institute Customer Service Subject: CFA Program inquiry (21223) Hello: I have a question on Reading 13 for Level III. Following is the LOS for that reading: Reading 13: A Survey of Behavioral Finance The candidate should be able to: a. critique the classic objection to behavioral finance that rational agents will quickly undo any dislocations caused by irrational traders; b. explain how the statement “there is no free lunch” can be valid in both efficient and inefficient markets, and discuss its relationship to the statement “prices are right”; c. evaluate the implementation costs and risks, including fundamental risk and noise trader risk, associated with trades designed to profit from asset mispricings. However there is no reference in this LOS to the material - starting from Section 3.2, Page 95 to the end of the chapter - in this reading . So, LOS does not refer to almost 80% of the chapter & that section is not optional either. Please advise.