Listing Category: CFA Level 3

10 things to do during final CFA exam month.

Final month is the most crucial. During this month, managing yourself, your psychology is more important than preparing for the exam. Anxiety is at it\’s peak and most candidates, despite knowing the entire material,...

Valuing Bonds with Embedded Options

In this article, we will concentrate on callable bonds and putable bonds, although we’ll mention prepayable and convertible bonds as well.

The common method of valuing a callable or putable bond is to use a binomial interest rate tree. For the examples that follow, we’ll use the binomial tree we created here; it has 10% interest rate volatility:

Time Diversification & Impact on Capital Allocation Decisions: A Corporate Finance Perspective

In his recent article, What Practitioners Need to Know…About Time Diversification , Mr. Kritzman offers a comprehensive view on time diversification. As an example, Mr. Kritzman outlines the following…


CFA level 3 pass rates for the last 5 years explained…

Answering a Constructed Response (Essay) Question: Allocating Your Time

When you are allocating your time to answering a constructed response (i.e., essay, morning session) question, follow this simple rule…

Essay (Constructed Response) Questions: What’s the Point?

A recent session with one of my tutoring candidates brought to mind an interesting idea that is more than worthy of an article of its own: What’s the point? When you are writing an...

How to Approach the Level III CFA Exam

If you’ve never taken the Level III CFA exam, you’re in for a real treat. (If you’ve taken it before, you already know what I mean.) As with the Level I and Level II exams, this exam will be six hours – three in the morning, and three in the afternoon – and it will be exhausting, both mentally and physically. Thus, you need to be prepared, both mentally and physically, to take this exam.

Cash (Currency): the Wonky Commodity

Throughout Level II and Level III – and a little bit at Level I – we see calculations that involve commodities; e.g., calculating the price or value of a forward or futures contract on an underlying commodity.