I am starting this thread to collate the lists we have to memorize for Level 3. 1. GIPS 26 discolsures in performance presentation list. 2. Benchmark qualities list - SAMURAI 3. Econ Data qualities list ?
RRTTLLU?
Equity call option strategies? Not really a large list but still…
Three components of return for a commodities futures contract: Spot return - Return on the futures caused by the change in the underlying commodity’s spot price. Collateral reurn - Assumed to be the risk-free rate. Roll return - Usually the result of backwardation. Backwardation produces a downward sloping structure o futures prices. ------------------------------------------------------------------ 3 types of managing currency exposure: Balanced mandate - Under this approach, the investment manager is given total responsibility for managing the portfolio, including the currency exposure. Currency overlay - The portfolio manager is not responsible for currency exposure. Instead, a separate manager (an expert in foreign currency management) is hired to manage the currency exposure within the guidelines of the IPS. Separate asset allocation - If currency is considered a separate asset, it is managed as if it were a totally separate allocation given to a separate manager and managed under its own guidelines. ------------------------------------------------------------------ Investor circumstances subject to change: RRTTLLU = Risk, return, time horizon, taxes, liquidity, legal, and unique. ------------------------------------------------------------------ Properties of a valid benchmark: SAMURAI = Specified in advance, Appropriate to the investment approach, Measurable, Unambiguous, Reflective of the manager’s current investment opinions, Accountable, Investible. ------------------------------------------------------------------ 5 types of investment risks: Specific Risk - The risk of the individual security - can be reduced or eliminated by holding the security in a diversified portfolio. Residual Risk - This risk is related to the trading strategies employed, how they are carried out, and how they are interpreted by taxing authorities. Includes counterparty and regulatory risk. Counterparty Risk - The probability that a counterparty will not correctly complete the transaction as expected. Regulatory Risk - The possibility that tax authorities will not accept the tax treatment applied to a transaction. Herstatt Risk - Alternate name for “settlement risk”, which is the risk that one side is paying while the other side is defaulting. It has historically been a problem in foreign exchange markets. Has been mitigated since 2002 by “continuously linked settlements”. ------------------------------------------------------------------ 3 examples of behavioral biases: Representativeness - Investors perceptions are based upon current of historical information rather than unbiased expectations. This can result in temporary mispricing of stocks. An example could be assuming a stock will do well in the future because it just announced a surprise good earnings. Conservatism - The inability of analysts to fully incorporate the impact of new information on their projections. Frame dependence - Investors’ tendency to change (frame) their risk tolerance according to the direction of the market.
Do a search for a very big thread with such lists that was rolling before the 2008 exam.
download the word file at the following address for pretty much all lists for the exam. note: the answers arn’t provided, just the templates for lists http://www.cfasuccess.com/cs/files/folders/level3notes/entry27.aspx
patkeenan: Thanks
patkeenan : Thanks …very helpful
Received. Thx GSG.
Bankin: welcome 
sent
Useful acronyms from last two years for memorizing lists. However, during the exam list memorization won’t help you much and is not really required with some minor exceptions, deeper understanding of information behind these numerous lists is usually necessary. http://www.analystforum.com/phorums/read.php?13,517586,page=1
Hello everyone, First i want to thank Pat Keenan for sharing this list document. The document is 15 pages long and has some questions which are not in the syllabus or moved to Level 2. Is any one interested in working with me, so we can share and develop an answer key for the list document. Thank You.
patkeenan Wrote: ------------------------------------------------------- > download the word file at the following address > for pretty much all lists for the exam. > > note: the answers arn’t provided, just the > templates for lists > > http://www.cfasuccess.com/cs/files/folders/level3n > otes/entry27.aspx Pretty fucking sweet. Thanks pat keenan.
GetSetGo Wrote: ------------------------------------------------------- > Hello everyone, > > First i want to thank Pat Keenan for sharing this > list document. The document is 15 pages long and > has some questions which are not in the syllabus > or moved to Level 2. > > Is any one interested in working with me, so we > can share and develop an answer key for the list > document. > > Thank You. Dwight.cfa@gmail.com
Bankin’ Wrote: ------------------------------------------------------- > sent Bankin’, I can’t download it. Please send to me as well at: bjhon73@hotmail.com Thanks