Ask Me Anything with Marc LeFebvre, CFA, founder of LevelUp Bootcamps this Friday (2/28) at 3:00 PM EST

I had a candidate tell me once I was like Bobby Flay the Food Network celebrity chef. Why? Because I slice and dice the curriculum as I do (like veggies and fruit). So the problem I perceive that candidate have is they read a reading then they work the practice problems all in order. Wrong. Read a section of the reading (after you use a video on that reading), pause, then turn to those problems that are associated with that topic and work all the associated problems at that time. So for example, if Grinold Kroner has four questions (all over the reading) then work all four after reading the topic. Don’t read the entire reading then work the end of reading practice problems 1-36. It all becomes a jumbled mess. Learn the topic, work the problems (all the problems) associated with that topic so you see immediately if you understood the concept or not then move to the next part of the reading. When you start on question 1 and work to 36 (for example) it all becomes jumbled as you said. There has to be a method to the disorganized madness of the CFA curriculum and thats what I try and help with.

You can absolutely abbreviate. The CFA Institute actually says on the website under exam resources I believe that very topic. They also have an entire book full of abbrev. to refer to during the grading process. ALWAYS label you final solution however whether it be in USD, AUD, CAD, etc…

The solutions are always good models for how to answer solutions on the exam. If you notice how they write the solutions is often is a format of “theory” then “practice” in the guideline solutions.

A long time ago in the morning essay they did ask why the correct answer was correct and then why the incorrect answer was incorrect. I have not seen that approach in essay exams in a very only time. Your time is so limited and the number of morning essay questions has become larger those long essay questions have low likelihood of showing up. Typically you will select why something is correct then you justify why it is correct.

Hi Marc,

What exactly will be covered in the ultimate bootcamp that is not in the regular bootcamp?

Is it a duplicate to attend both regular and the ultimate bootcamps?

Any equation is potential exam topic, per the CFA Institute. I have seen nearly every complex equation tested in one way or another. It may not be the equation exactly but what factors influence the equation, what makes the result go up or down in value (PBO, ABO in pension liabilities for example). Know how the underlying variables influence the resultant vale.
The IPS return calc has been moved to Level I. For the Intro to Private wealth, I always say to look to the Bluebox examples as how they can test the topic then the end of reading questions.

You have 7 days (after earlier bootcamps with me) to work problems across the entire curriculum. The group size is limited and we work as a group, exchanging ways we would answer questions, learning why others made mistakes and using each others experience and knowledge to help the whole group, essentially all working to the same goal. I walk through every reading and we work most of the problems (which I can’t do all of them in a 4 day bootcamp but we do a lot in those 4 days). Going to Omaha, getting away from home, work, family and focusing on topics, problems and walking across the street to the exam center makes that stress filled week prior to the exam a lot less stressful. Having access to myself and other candidates to study will is a tremendous benefit. Your hotel room (Marriott Residence Inn) and breakfast and lunch is also covered. Candidates raved about the concierge service they received and the active problem solving nature of the review last year.

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The CFA curriculum would be far more specific in the hedge topic, are you hedging interest rate risk, are you hedging equity market risk, are you hedging commodity price movements (up or down), are you hedging Forex movements up or down. The almost never tackle hedges for general movements like a sell off in the past two days.

Are mock exams included in the bootcamp or videos?

The CA is all about good and services. The CFA account is all about financial assets. An increase in the purchase of one has to be offset by the other. So if I spend $ on corn, I’m not investing that money in another financial asset. If I save (CFA account) then I’m not spending. Think of it as spending on goods and services vs. saving or investing on financial assets. I hope that helps as a good framework.

Hi Tivo86. The BootCamps and the videos are separate products and do not include mock exams. I will have an option on my website to refer you to great mock exams via Bill Campbell where he can provide them for you. Great preparation and work before hand is a necessary step to prepare well on mocks.

You are very welcome and have a productive weekend.

Hey GatorBite43…dig in and dig deep. You have time. If you can watch videos that helps a great deal as its faster than reading plus registering helps. Work problems and rework those same CFA problems. The exam is a problem solving exercise, if you work problems from the CFA curriculum and you work them a lot that is a large part of the battle. So many candidates want to read and not solve problems. Both have to be done but in the long run you have to solve problems on the June exam.

Hi there, I’m in Capital Mkt Expectations Part II. BB 1. Rates are rising 2% over 2 years. On the 2 year horizon the reinvestment piece is 1% next to the capital loss of 9.6%. Should it be 2%? Am I missing something?

I reexamined your last part of the question…the Cfa Institute says that restating part of the question does not earn you any points. Answering the question being asked always does earn points, thats for sure. Using information in the question to backup, support or justify your answer is what they are looking for in a solid solution.

Got it. Thanks!

Yes you are missing something, it is the “time” part of the question. Bond yields rose 2%, went up over the first two years and the price based on the bond duration went down just in those first two years. Now after the initial price drop, the higher yields help the reinvested interest over the next three and five years beyond the first two years. As the time moves from 2 years to 5 and 7 they are adding the incremental benefit of the higher rates on the bond return for those longer incremental years. So in the 5 yr example they only added the incremental 3 years (5 - 2 = 3) of higher reinvested rates and then in the 7 year they only added the incremental 5 years (7 - 2 = 5) to the return calculation of the higher yields on reinvested benefit on the return calc.

Thank you. Conceptually I get it. I am not quite certain how one arrived at the 1% is my issue which is then carried on to the reinvestment benefit for 5 and 7 years.

They state the following in the question…Higher yields boost reinvestment by 1%

if i follow the recommended strategy from here on wards , should i focus more on Qbank type of questions or more on EOC / blue box / white box / institute topic test kind of questions.

reading the material again i dont know how much will that help?

Focus (Material :wink: on the CFA related problems…white text, blue box, end of reading practice problems, on line topic tests and rework them all the way to the exam. Review material in the curriculum frequently.

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