How important is understanding the PM material in L2 for L3? Since it is not heavily weighted for L2, I am considering not focusing on this area as much, but was wondering if that would penalize me when it came to L3. Thanks for your help!
Portfolio mgmt is like half the exam for L3 lolz
some ppl piss me off so much.
You got what 10 months till lv2 exam. Step up and learn it. its going to take you what a couple weeks?
You got a long road ahead, people with that mind set trying to cut corners aint gonna make it.
getting burned in this discussion - ok maybe i worded the question poorly. What I meant was were there any core concepts/items covered in L2 that are not covered again in L3, so that I could know what to focus on more for PM. Without getting too specific, items in L2 like CAL and CML, Multifactor models, etc - is everything in L2 simply expanded upon in L3? If not, any advice on general areas to really nail down in L2 because it is essential for passing L3?
The stuff you mentioned was in the curriculum last year - cant say how it will be next year. As far as the overall concept of portfolio management, LII and LIII are EXTREMELY different. Although its 50%+ in LIII, its got a very different view of the topic than at LII. LII is a lot more about valuation, while LIII is more of how to understand your client, where to allocate assets, and how to judge performance and outside managers. You are not valuing swaps more likely focusing on how to use swaps or futures to change the exposure of your portfolio given a forecast in changing interest rates, or you are not valuing an MBS, rather trying to figure out the best way to hedge it (some examples). It is A LOT more about here is a client, these are his goals, how are we going to achieve them (whether he is an Institution or individual).
That said, the stuff you mentioned above is some of the core stuff you need to know. CAL and CML is always important, and youll need to know some of those concepts for corner portfolios. Multifactor models show up in as a way to run projections. ICAPM also shows up for example, with the Singer Terhart model. Currencies are a huge part of the curriculum last eyar as well (again this is all based on the curriculum last year).
In the end, you have a ton of time, I would not recommend skipping anything.
Thanks Spanishhesk that def helps
why do i have the feeling that everyone did in afternoon better than morning? i messed up afternoon big time although i felt really prepared… no clue what went wrong… i felt i did better in am. but yeah, feeling the “we are sorry” … email closer and closer as we approach tuesday =)
Took me a moment but OP’s comment of ‘PM’ referred to portfolio management, and not AM vs ‘PM’ exam.