2022 CFA Program Curriculum Level III Box Set (vol. 1-6)

Cover\nCopyright Page\nTable of Contents\n2022 CFA Program Level III Volume 1: Behavioral Finance, Capital Market Expectations, and Asset Allocation\n	Title Page\n	Table of Contents\n	How to Use the CFA Program Curriculum\n		Background on the CBOK\n		Organization of the Curriculum\n		Features of the Curriculum\n			End of Reading Questions/Solutions\n			Glossary\n			LOS Self-Check\n			Source Material\n			Errata\n		Designing Your Personal Study Program\n			Create a Schedule\n		CFA Institute Learning Ecosystem (LES)\n			Structured and Adaptive Study Plans\n			Flashcards and Game Center\n			Discussion Board\n			Practice Question Bank\n			Mock Exams\n		Prep Providers\n		Feedback\n	Portfolio Management\n		Study Sessions\n		Topic Level Learning Outcome\n	Study Session 1. Behavioral Finance\n		Reading Assignments\n		Reading 1. The Behavioral Biases of Individuals\n			Learning Outcomes\n			1. Introduction and Categorizations of Behavioral Biases\n				1.1. Categorizations of Behavioral Biases\n				1.2. Differences between Cognitive Errors and Emotional Biases\n			2. Cognitive Errors: Belief Perseverance Biases: Conservation Bias and Confirmation Bias\n				2.1. Belief Perseverance Biases\n					2.1.1. Conservatism Bias\n						Consequences of Conservatism Bias\n						Detection of and Guidance for Overcoming Conservatism Bias\n					2.1.2. Confirmation Bias\n						Consequences of Confirmation Bias\n						Detection of and Guidance for Overcoming Confirmation Bias\n			3. Cognitive Errors: Belief Perseverance Biases – Representativeness\n				3.1. Base-Rate Neglect\n				3.2. Sample-Size Neglect\n				3.3. Consequences of Representativeness Bias\n				3.4. Detection of and Guidance on Overcoming Representativeness Bias\n			4. Cognitive Errors: Belief Perseverance Biases - Illusion of Control Bias and Hindsight Bias\n				4.1. Illusion of control bias\n					Consequences of Illusion of Control\n					Detection of and Guidelines for Overcoming Illusion of Control Bias\n				4.2. Hindsight Bias\n					Consequences of Hindsight Bias\n					Detection of and Guidelines for Overcoming Hindsight Bias\n			5. Cognitive Errors: Information Processing Biases\n				5.1. Anchoring and Adjustment Bias\n					Consequences of Anchoring and Adjustment Bias\n					Detection of and Guidelines for Overcoming Anchoring and Adjustment Bias\n				5.2. Mental Accounting Bias\n					Consequences of Mental Accounting Bias\n					Detection of and Guidelines for Overcoming Mental Accounting Bias\n				5.3. Framing Bias\n					Consequences of Framing Bias\n					Detection of and Guidelines for Overcoming Framing Bias\n				5.4. Availability Bias\n					Retrievability\n					Categorization\n					Narrow Range of Experience\n					Resonance\n					Consequences of Availability Bias\n					Detection of and Guidelines for Overcoming Availability Bias\n				5.5. Cognitive Errors: Conclusion\n			6. Emotional Biases: Loss Aversion\n				6.1. Loss-Aversion Bias\n					Consequences of Loss Aversion\n					Special Application: Myopic Loss Aversion\n					Detection of and Guidelines for Overcoming Loss Aversion\n			7. Emotional Biases: Overconfidence & Self Control\n				7.1. Overconfidence Bias\n					Consequences of Overconfidence Bias\n					Detection of and Guidelines for Overcoming Overconfidence Bias\n				7.2. Self-Control Bias\n					Consequences of Self-Control Bias\n					Detection of and Guidelines for Overcoming Self-Control Bias\n			8. Emotional Biases: Status Quo, Endowment, and Regret-Aversion\n				8.1. Status Quo Bias\n					Consequences of Status Quo Bias\n					Detection of and Guidelines for Overcoming Status Quo Bias\n				8.2. Endowment Bias\n					Consequences of Endowment Bias\n					Detection of and Guidelines for Overcoming Endowment Bias\n				8.3. Regret-Aversion Bias\n					Consequences of Regret-Aversion Bias\n					Detection of and Guidelines for Overcoming Regret-Aversion Bias\n				8.4. Emotional Biases: Conclusion\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 2. Behavioral Finance and Investment Processes\n			Learning Outcomes\n			1. Introduction and General Discussion of Investor Types\n				1.1. General Discussion of Investor Types\n					1.1.1. Barnewall Two-Way Model\n					1.1.2. Bailard, Biehl, and Kaiser Five-Way Model\n			2. New Developments in Psychographic Modeling: Behavioral Investor Types\n				2.1. The Behavioral Alpha Process: A Top-Down Approach\n					Step 1: Interview the client and identify active or passive traits and risk tolerance.\n					Step 2: Plot the investor on the active/passive and risk tolerance scale.\n					Step 3: Test for behavioral biases.\n					Step 4: Classify investor into a behavioral investor type.\n						Advising Passive Preservers:\n						Advising Friendly Followers:\n						Advising Independent Individualists:\n						Advising Active Accumulators:\n				2.2. Limitations of Classifying Investors into Various Types\n			3. How Behavioral Factors Affect Adviser-Client Relations\n				3.1. Formulating Financial Goals\n				3.2. Maintaining a Consistent Approach\n				3.3. Investing as the Client Expects\n				3.4. Ensuring Mutual Benefits\n				3.5. Limitations of Traditional Risk Tolerance Questionnaires\n			4. How Behavioral Factors Affect Portfolio Construction\n				4.1. Inertia and Default\n				4.2. Naïve Diversification\n				4.3. Company Stock: Investing in the Familiar\n				4.4. Excessive Trading\n				4.5. Home Bias\n				4.6. Behavioral Portfolio Theory\n			5. Behavioral Finance and Analyst Forecasts and Overconfidence in Forecasting Skills\n				5.1. Overconfidence in Forecasting Skills\n					5.1.1. Remedial Actions for Overconfidence and Related Biases\n			6. Influence of Company’s Management on Analysis and Analyst Biases in Conducting Research\n				6.1. Remedial Actions for Influence of Company’s Management on Analysis\n				6.2. Analyst Biases in Conducting Research\n				6.3. Remedial Actions for Analyst Biases in Conducting Research\n			7. How Behavioral Factors Affect Committee Decision Making\n				7.1. Investment Committee Dynamics\n				7.2. Techniques for Structuring and Operating Committees to Address Behavioral Factors\n			8. How Behavioral Finance Influences Market Behavior\n				8.1. Defining Market Anomalies\n				8.2. Momentum\n				8.3. Bubbles and Crashes\n				8.4. Value and Growth\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Study Session 2. Capital Market Expectations\n		Reading Assignments\n		Reading 3. Capital Market Expectations, Part 1: Framework and Macro Considerations\n			Learning Outcomes\n			1. Introduction & Framework for Developing Capital Market Expectations\n				1.1. Framework and Challenges\n					1.1.1. A Framework for Developing Capital Market Expectations\n			2. Challenges in Forecasting\n				2.1. Limitations of Economic Data\n				2.2. Data Measurement Errors and Biases\n				2.3. The Limitations of Historical Estimates\n				2.4. Ex Post Risk Can Be a Biased Measure of Ex Ante Risk\n				2.5. Biases in Analysts’ Methods\n				2.6. The Failure to Account for Conditioning Information\n				2.7. Misinterpretation of Correlations\n				2.8. Psychological Biases\n				2.9. Model Uncertainty\n			3. Economic and Market Analysis: The Role of Economic Analysis and Analysis of Economic Growth: Exogenous Shocks to Growth\n				3.1. The Role of Economic Analysis\n				3.2. Analysis of Economic Growth\n					3.2.1. Exogenous Shocks to Growth\n			4. Applying Growth Analysis to Capital Market Expectations\n				4.1. A Decomposition of GDP Growth and Its Use in Forecasting\n				4.2. Anchoring Asset Returns to Trend Growth\n			5. Approaches to Economic Forecasting\n				5.1. Econometric Modeling\n				5.2. Economic Indicators\n				5.3. Checklist Approach\n				5.4. Economic Forecasting Approaches: Summary of Strengths and Weaknesses\n			6. Business Cycle Analysis, Phases of the Business Cycle and Market Expectations and the Business Cycle\n				6.1. Phases of The Business Cycle\n				6.2. Market Expectations and the Business Cycle\n			7. Inflation and Deflation: Trends and Relations to the Business Cycle\n			8. Analysis of Monetary and Fiscal Policies\n				8.1. Monetary Policy\n			9. What Happens When Interest Rates Are Zero or Negative? And Implications of Negative Rates for Capital Market Expectations\n				9.1. Implications of Negative Interest Rates for Capital Market Expectations\n			10. The Monetary and Fiscal Policy Mix and the Shape of the Yield Curve and the Business Cycle\n				10.1. The Shape of the Yield Curve and the Business Cycle\n			11. International Interactions\n				11.1. Macroeconomic Linkages\n				11.2. Interest Rate/Exchange Rate Linkages\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 4. Capital Market Expectations, Part 2: Forecasting Asset Class Returns\n			Learning Outcomes\n			1. Introduction\n			2. Overview of Tools and Approaches\n				2.1. The Nature of the Problem\n				2.2. Approaches to Forecasting\n					2.2.1. Statistical Methods\n					2.2.2. Discounted Cash Flow\n					2.2.3. Risk Premium Models\n			3. Forecasting Fixed Income Returns\n				3.1. Applying DCF to Fixed Income\n				3.2. The Building Block Approach to Fixed-Income Returns\n					3.2.1. The Short-term Default-free Rate\n					3.2.2. The Term Premium\n					3.2.3. The Credit Premium\n					3.2.4. The Liquidity Premium\n			4. Risks in Emerging Market Bonds\n				4.1. Economic Risks/Ability to Pay\n				4.2. Political and Legal Risks/Willingness to Pay\n			5. Forecasting Equity Returns\n				5.1. Historical Statistics Approach to Equity Returns\n				5.2. DCF Approach to Equity Returns\n				5.3. Risk Premium Approaches to Equity Returns\n					5.3.1. Defining and Forecasting the Equity Premium\n					5.3.2. An Equilibrium Approach\n				5.4. Risks in Emerging Market Equities\n			6. Forecasting Real Estate Returns\n				6.1. Historical Real Estate Returns\n				6.2. Real Estate Cycles\n				6.3. Capitalization Rates\n				6.4. The Risk Premium Perspective on Real Estate Expected Return\n				6.5. Real Estate in Equilibrium\n				6.6. Public vs. Private Real Estate\n				6.7. Long-Term Housing Returns\n			7. Forecasting Exchange Rates\n				7.1. Focus on Goods and Services, Trade, and the Current Account\n					7.1.1. Trade Flows\n					7.1.2. Purchasing Power Parity\n					7.1.3. Competitiveness and Sustainability of the Current Account\n				7.2. Focus on Capital Flows\n					7.2.1. Implications of Capital Mobility\n					7.2.2. Uncovered Interest Rate Parity and Hot Money Flows\n					7.2.3. Portfolio Balance, Portfolio Composition, and Sustainability Issues\n			8. Forecasting Volatility\n				8.1. Estimating a Constant VCV Matrix with Sample Statistics\n				8.2. VCV Matrices from Multi-Factor Models\n				8.3. Shrinkage Estimation of VCV Matrices\n				8.4. Estimating Volatility from Smoothed Returns\n				8.5. Time-Varying Volatility: ARCH Models\n			9. Adjusting a Global Portfolio\n				9.1. Macro-Based Recommendations\n					Trend Growth\n					Global Integration\n					Phases of the Business Cycle\n					Monetary and Fiscal Policies\n					Current Account Balances\n					Capital Accounts and Currencies\n				9.2. Quantifying the Views\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Study Session 3. Asset Allocation and Related Decisions in Portfolio Management\n		Reading Assignments\n		Reading 5. Overview of Asset Allocation\n			Learning Outcomes\n			1. Introduction and Asset Allocation: Importance in Investment Management\n				1.1. Asset Allocation: Importance in Investment Management\n			2. The Investment Governance Background to Asset Allocation\n				2.1. Governance Structures\n				2.2. Articulating Investment Objectives\n				2.3. Allocation of Rights and Responsibilities\n				2.4. Investment Policy Statement\n				2.5. Asset Allocation and Rebalancing Policy\n				2.6. Reporting Framework\n				2.7. The Governance Audit\n			3. The Economic Balance Sheet and Asset Allocation\n			4. Approaches to Asset Allocation, Relevant Objectives and Relevant Risk Concepts\n				4.1. Relevant Objectives\n				4.2. Relevant Risk Concepts\n			5. Modeling Asset Class Risk\n			6. Strategic Asset Allocation\n			7. Strategic Asset Allocation: Asset Only\n			8. Strategic Asset Allocation: Liability Relative\n			9. Strategic Asset Allocation: Goals Based\n			10. Implementation Choices\n				10.1. Passive/Active Management of Asset Class Weights\n				10.2. Passive/Active Management of Allocations to Asset Classes\n				10.3. Risk Budgeting Perspectives in Asset Allocation and Implementation\n			11. Rebalancing: Strategic considerations\n				11.1. A Framework for Rebalancing\n				11.2. Strategic Considerations in Rebalancing\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 6. Principles of Asset Allocation\n			Learning Outcomes\n			1. Introduction\n			2. Developing Asset-Only Asset Allocations; and Mean-Variance Optimization: Overview\n				2.1. Mean–Variance Optimization: Overview\n			3. Monte Carlo Simulation\n			4. Criticisms of Mean-Variance Optimization\n			5. Addressing the Criticisms of Mean-Variance Optimization; Reverse Optimization and Black Litterman Model\n				5.1. Reverse Optimization\n				5.2. Black–Litterman Model\n			6. Addressing the Criticisms of Mean-Variance Optimization; Adding Constraints beyond Budget Constraints, Resampled Mean-Variance Optimizations and Other Non-Normal Optimization Approaches\n				6.1. Resampled Mean–Variance Optimization\n				6.2. Other Non-Normal Optimization Approaches\n			7. Allocating to Less Liquid Asset Classes\n			8. Risk Budgeting\n			9. Factor-Based Asset Allocation\n			10. Developing Liability-Relative Asset Allocations; and Characterizing the Liabilities\n				10.1. Characterizing the Liabilities\n			11. Approaches to Liability-Relative Asset Allocation; and Surplus Optimization\n				11.1. Surplus Optimization\n			12. Approaches to Liability-Relative Asset Allocation\n				12.1. Hedging/Return-Seeking Portfolio Approach\n					Forming the Hedging Portfolio\n					Limitations\n				12.2. Integrated Asset–Liability Approach\n				12.3. Comparing the Approaches\n			13. Examining the Robustness of Asset Allocation Alternatives\n			14. Factor Modeling in Liability-Relative Approaches\n			15. Developing Goals-Based Asset Allocations. The Goals-Based Asset Allocation Process and Describing Client Goals.\n				15.1. The Goals-Based Asset Allocation Process\n				15.2. Describing Client Goals\n			16. Constructing Sub-Portfolios and the Overall Portfolio\n				16.1. The Overall Portfolio\n			17. Revisiting the Module Process in Detail\n			18. Periodically Revisiting the Overall Asset Allocation and Issues Related to Goals-Based Asset Allocation\n				18.1. Issues Related to Goals-Based Asset Allocation\n			19. Heuristics and Other Approaches to Asset Allocation\n				19.1. The “120 minus your age” rule\n				19.2. The 60/40 stock/bond heuristic\n				19.3. The endowment model\n				19.4. Risk parity\n				19.5. The 1/N rule\n			20. Portfolio Rebalancing in Practice\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 7. Asset Allocation with Real-World Constraints\n			Learning Outcomes\n			1. Introduction\n			2. Constraints in Asset Allocation and Asset Size\n				2.1. Asset Size\n			3. Liquidity\n			4. Time Horizon\n				4.1. Changing Human Capital\n				4.2. Changing Character of Liabilities\n			5. Regulatory and Other External Constraints\n				5.1. Insurance Companies\n				5.2. Pension Funds\n				5.3. Endowments and Foundations\n				5.4. Sovereign Wealth Funds\n			6. Asset Allocation for the Taxable Investor and After-Tax Portfolio Optimization\n				6.1. After-Tax Portfolio Optimization\n			7. Taxes and Portfolio Rebalancing and Strategies to Reduce Tax Impact\n				7.1. Strategies to Reduce Tax Impact\n			8. Revising the Strategic Asset Allocation\n				8.1. Goals\n				8.2. Constraints\n				8.3. Beliefs\n			9. Short-Term Shifts in Asset Allocation\n				9.1. Discretionary TAA\n				9.2. Systematic TAA\n			10. Dealing with Behavioral Biases in Asset Allocation\n				10.1. Loss Aversion\n				10.2. Illusion of Control\n				10.3. Mental Accounting\n				10.4. Representativeness Bias\n				10.5. Framing Bias\n				10.6. Availability Bias\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Glossary\n2022 CFA Program Level III Volume 2: Derivatives, Currency Management, and Fixed Income\n	Title Page\n	Table of Contents\n	How to Use the CFA Program Curriculum\n		Background on the CBOK\n		Organization of the Curriculum\n		Features of the Curriculum\n			End of Reading Questions/Solutions\n			Glossary\n			LOS Self-Check\n			Source Material\n			Errata\n		Designing Your Personal Study Program\n			Create a Schedule\n		CFA Institute Learning Ecosystem (LES)\n			Structured and Adaptive Study Plans\n			Flashcards and Game Center\n			Discussion Board\n			Practice Question Bank\n			Mock Exams\n		Prep Providers\n		Feedback\n	Portfolio Management\n		Study Sessions\n		Topic Level Learning Outcome\n	Study Session 4. Derivatives and Currency Management\n		Reading Assignments\n		Reading 8. Options Strategies\n			Learning Outcomes\n			1. Introduction\n			2. Position Equivalencies\n				2.1. Synthetic Forward Position\n				2.2. Synthetic Put and Call\n			3. Covered Calls and Protective Puts\n				3.1. Investment Objectives of Covered Calls\n					3.1.1. Market Participant #1: Yield Enhancement\n					3.1.2. Market Participant #2: Reducing a Position at a Favorable Price\n					3.1.3. Market Participant #3: Target Price Realization\n					3.1.4. Profit and Loss at Expiration\n			4. Investment Objectives of Protective Puts\n				4.1. Loss Protection/Upside Preservation\n				4.2. Profit and Loss at Expiration\n			5. Equivalence to Long Asset/Short Forward Position\n				5.1. Writing Puts\n			6. Risk Reduction Using Covered Calls and Protective Puts\n				6.1. Covered Calls\n				6.2. Protective Puts\n				6.3. Buying Calls and Writing Puts on a Short Position\n			7. Spreads and Combinations\n				7.1. Bull Spreads and Bear Spreads\n					7.1.1. Bull Spread\n					7.1.2. Bear Spread\n					7.1.3. Refining Spreads\n						7.1.3.1. Adding a Short Leg to a Long Position\n						7.1.3.2. Spreads and Delta\n			8. Straddle\n				8.1. Collars\n					8.1.1. Collars on an Existing Holding\n					8.1.2. The Risk of a Collar\n					8.1.3. The Risk of Spreads\n				8.2. Calendar Spread\n			9. Implied Volatility and Volatility Skew\n			10. Investment Objectives and Strategy Selection\n				10.1. The Necessity of Setting an Objective\n				10.2. Criteria for Identifying Appropriate Option Strategies\n			11. Uses of Options in Portfolio Management\n				11.1. Covered Call Writing\n					Solution:\n				11.2. Put Writing\n					Solution:\n						Scenario A:\n						Scenario B:\n				11.3. Long Straddle\n					Solution:\n				11.4. Collar\n					Solution:\n				11.5. Calendar Spread\n					Solution to 1:\n					Solution to 2:\n						Scenario 1:\n						Scenario 2:\n						Scenario 3:\n						Scenario 4:\n			12. Hedging an Expected Increase in Equity Market Volatility\n				Solution to 1:\n				Solution to 2:\n				Solution to 3:\n				12.1. Establishing or Modifying Equity Risk Exposure\n					12.1.1. Long Call\n						Solution:\n					12.1.2. Risk Management: Protective Put Position\n						Situation A: Before Relais Corporation’s quarterly earnings release:\n							Solution to 1:\n						Situation B: One week later, just after Relais Corporation’s earnings release:\n							Solution to 2:\n			Summary\n			Practice Problems\n			Solutions\n		Reading 9. Swaps, Forwards, and Futures Strategies\n			Learning Outcomes\n			1. Managing Interest Rate Risk with Swaps\n				1.1. Changing Risk Exposures with Swaps, Futures, and Forwards\n					1.1.1. Managing Interest Rate Risk\n						1.1.1.1. Interest Rate Swaps\n			2. Managing Interest Rate Risk with Forwards, Futures and Fixed-Income Futures\n				2.1. Fixed-Income Futures\n			3. Managing Currency Exposure\n				3.1. Currency Swaps\n				3.2. Currency Forwards and Futures\n			4. Managing Equity Risk\n				4.1. Equity Swaps\n				4.2. Equity Forwards and Futures\n				4.3. Cash Equitization\n			5. Volatility Derivatives: Futures and Options\n				5.1. Volatility Futures and Options\n			6. Volatility Derivatives: Variance Swaps\n			7. Using Derivatives to Manage Equity Exposure and Tracking Error\n				Solution:\n					Scenario A:\n					Scenario B:\n				7.1. Cash Equitization\n					Scenario: Three months later, the FTSE 100 Index has increased by 5%.\n			8. Using Derivatives in Asset Allocation\n				8.1. Changing Allocations between Asset Classes Using Futures\n					Solution to 1:\n					Solution to 2:\n					Solution to 3:\n				8.2. Rebalancing an Asset Allocation Using Futures\n					Solution:\n				8.3. Changing Allocations between Asset Classes Using Swaps\n					Solution:\n			9. Using Derivatives to Infer Market Expectations\n				9.1. Using Fed Funds Futures to Infer the Expected Average Federal Funds Rate\n				9.2. Inferring Market Expectations\n					Solution to 1:\n					Solution to 2:\n			Summary\n			Practice Problems\n			Solutions:\n		Reading 10. Currency Management: An Introduction\n			Learning Outcomes\n			1. Introduction\n			2. Review of Foreign Exchange Concepts\n				2.1. Spot Markets\n				2.2. Forward Markets\n				2.3 FX Swap Markets\n				2.4. Currency Options\n			3. Currency Risk and Portfolio Risk and Return\n				3.1. Return Decomposition\n				3.2. Volatility Decomposition\n			4. Strategic Decisions in Currency Management: Overview\n				4.1. The Investment Policy Statement\n				4.2. The Portfolio Optimization Problem\n				4.3. Choice of Currency Exposures\n					4.3.1. Diversification Considerations\n					4.3.2. Cost Considerations\n			5. Strategic Decisions in Currency Management: Spectrum of Currency Risk Management Strategies\n				5.1. Passive Hedging\n				5.2. Discretionary Hedging\n				5.3. Active Currency Management\n				5.4. Currency Overlay\n			6. Strategic Decisions in Currency Management: Formulating a Currency Management Program\n			7. Active Currency Management: Based on Economic Fundamentals, Technical Analysis and the Carry Trade\n				7.1. Active Currency Management Based on Economic Fundamentals\n				7.2. Active Currency Management Based on Technical Analysis\n				7.3. Active Currency Management Based on the Carry Trade\n			8. Active Currency Management: Based on Volatility Trading\n			9. Currency Management Tools: Forward Contracts, FX Swaps and Currency Options\n				9.1. Forward Contracts\n					9.1.1. Hedge Ratios with Forward Contracts\n					9.1.2. Roll Yield\n				9.2. Currency Options\n			10. Currency Management Strategies\n				10.1. Over-/Under-Hedging Using Forward Contracts\n				10.2. Protective Put Using OTM Options\n				10.3. Risk Reversal (or Collar)\n				10.4. Put Spread\n				10.5. Seagull Spread\n				10.6. Exotic Options\n				10.7. Section Summary\n			11. Hedging Multiple Foreign Currencies\n				11.1. Cross Hedges and Macro Hedges\n				11.2. Minimum-Variance Hedge Ratio\n				11.3. Basis Risk\n			12. Currency Management Tools and Strategies: A Summary\n			13. Currency Management for Emerging Market Currencies\n				13.1. Special Considerations in Managing Emerging Market Currency Exposures\n				13.2. Non-Deliverable Forwards\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Study Session 5. Fixed-Income Portfolio Management (1)\n		Reading Assignments\n		Reading 11. Overview of Fixed-Income Portfolio Management\n			Learning Outcomes\n			1. Introduction\n			2. Roles of Fixed-Income Securities in Portfolios\n				2.1. Diversification Benefits\n				2.2. Benefits of Regular Cash Flows\n				2.3. Inflation-Hedging Potential\n			3. Classifying Fixed-Income Mandates\n				3.1. Liability-Based Mandates\n				3.2. Total Return Mandates\n				3.3. Fixed-Income Mandates with ESG Considerations\n			4. Fixed-Income Portfolio Measures\n				4.1. Portfolio Measures of Risk and Return\n				4.2. Correlations between Fixed-Income Sectors\n				4.3. Use of Measures of Risk and Return in Portfolio Management\n					4.3.1. Portfolio Duration in Total Return Mandates\n					4.3.2. Managing Credit Exposure Using Spread Duration\n					4.3.3. Relative Value Concept\n			5. Bond Market Liquidity\n				5.1. Liquidity among Bond Market Sub-Sectors\n				5.2. The Effects of Liquidity on Fixed-Income Portfolio Management\n					5.2.1. Pricing\n					5.2.2. Portfolio Construction\n					5.2.3. Alternatives to Direct Investment in Bonds\n			6. A Model for Fixed-Income Returns\n				6.1. Decomposing Expected Returns\n					6.1.1. Coupon Income\n					6.1.2. Rolldown Return\n					6.1.3. Views of Benchmark Yields\n					6.1.4. Views of Yield Spreads\n					6.1.5. Views of Currency Value Changes\n				6.2. Estimation of the Inputs\n				6.3. Limitations of the Expected Return Decomposition\n			7. Leverage\n				7.1. Using Leverage\n				7.2. Methods for Leveraging Fixed-Income Portfolios\n					7.2.1. Futures Contracts\n					7.2.2. Swap Agreements\n					7.2.3. Repurchase Agreements\n					7.2.4. Security Lending\n				7.3. Risks of Leverage\n			8. Fixed-Income Portfolio Taxation\n				8.1. Principles of Fixed-Income Taxation\n				8.2. Investment Vehicles and Taxes\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 12. Liability-Driven and Index-Based Strategies\n			Learning Outcomes\n			1. Introduction\n			2. Liability-Driven Investing\n				2.1. Liability-Driven Investing vs. Asset-Driven Liabilities\n				2.2. Types of Liabilities\n			3. Interest Rate Immunization: Managing the Interest Rate Risk of a Single Liability\n				3.1. A Numerical Example of Immunization\n					3.1.1. Portfolio Features\n					3.1.2. Portfolio Duration\n					3.1.3. Portfolio Dispersion\n					3.1.4. Portfolio Convexity\n					3.1.5. Investment Horizon and Immunization\n					3.1.6. A Drop in the Cash Flow Yield Scenario\n					3.1.7. An Increase in the Cash Flow Yield Scenario\n					3.1.8. Immunization and Rebalancing\n					3.1.9. Immunization and Shifts in the Yield Curve\n					3.1.10. Structural Risk in Immunization Strategy\n			4. Interest Rate Immunization: Managing the Interest Rate Risk of Multiple Liabilities\n				4.1. Cash Flow Matching\n				4.2. Laddered Portfolios\n					4.2.1. Benefits of Using Laddered Portfolios\n					4.2.2. Using ETFs to Build Laddered Portfolios\n				4.3. Duration Matching\n					4.3.1. Duration Matching—Parallel Shift Example\n					4.3.2. Duration Matching—Yield Curve Twist Scenario\n				4.4. Derivatives Overlay\n				4.5. Contingent Immunization\n			5. Liability-Driven Investing: An Example of a Defined Benefit Pension Plan\n				5.1. Model Assumptions\n				5.2. Model Inputs\n				5.3. Calculating Durations\n				5.4. Addressing the Duration Gap\n					5.4.1. Using Futures to Reduce the Duration Gap\n					5.4.2. Using Interest Rate Swaps to Reduce Duration Gap\n					5.4.3. Using Options to Reduce Duration Gap\n					5.4.4. Using a Swaption Collar\n					5.4.5. Selecting a Suitable Hedging Strategy\n			6. Risks in Liability-Driven Investing\n				6.1. Model Risk in Liability-Driven Investing\n				6.2. Spread Risk in Liability-Driven Investing\n				6.3. Counterparty Credit Risk\n				6.4. Asset Liquidity Risk\n			7. Bond Indexes and the Challenges of Matching a Fixed-Income Portfolio to an Index\n				7.1. Size and Breadth of the Fixed-Income Universe\n				7.2. Array of Characteristics\n				7.3. Unique Issuance and Trading Patterns\n				7.4. Primary Risk Factors\n			8. Alternative Methods for Establishing Passive Bond Market Exposure\n				8.1. Full Replication\n				8.2. Enhanced Indexing\n					8.2.1. Enhancement Strategies\n				8.3. Alternatives to Investing Directly in Fixed-Income Securities\n			9. Benchmark Selection\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Glossary\n2022 CFA Program Level III Volume 3: Fixed Income and Equity Portfolio Management\n	Title Page\n	Table of Contents\n	How to Use the CFA Program Curriculum\n		Background on the CBOK\n		Organization of the Curriculum\n		Features of the Curriculum\n			End of Reading Questions/Solutions\n			Glossary\n			LOS Self-Check\n			Source Material\n			Errata\n		Designing Your Personal Study Program\n			Create a Schedule\n		CFA Institute Learning Ecosystem (LES)\n			Structured and Adaptive Study Plans\n			Flashcards and Game Center\n			Discussion Board\n			Practice Question Bank\n			Mock Exams\n		Prep Providers\n		Feedback\n	Portfolio Management\n		Study Sessions\n		Topic Level Learning Outcome\n	Study Session 6. Fixed-Income Portfolio Management (2)\n		Reading Assignments\n		Reading 13. Yield Curve Strategies\n			Learning Outcomes\n			1. Introduction\n			2. Key Yield Curve and Fixed-Income Concepts for Active Managers\n				2.1. Yield Curve Dynamics\n				2.2. Duration and Convexity\n			3. Yield Curve Strategies\n				3.1. Static Yield Curve\n				3.2. Dynamic Yield Curve\n					3.2.1. Divergent Rate Level View\n					3.2.2. Divergent Yield Curve Slope View\n						Rolldown Return\n						Δ Price Due to Benchmark Yield Changes\n					3.2.3. Divergent Yield Curve Shape View\n					3.2.4. Yield Curve Volatility Strategies\n				3.3. Key Rate Duration for a Portfolio\n			4. Active Fixed-Income Management across Currencies\n			5. A Framework for Evaluating Yield Curve Strategies\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 14. Fixed-Income Active Management: Credit Strategies\n			Learning Outcomes\n			1. Introduction\n			2. Key Credit and Spread Concepts for Active Management\n				2.1. Credit Risk Considerations\n					2.1.1. Default Probabilities and Recovery Rates\n					2.1.2. Default versus Credit Migration\n					2.1.3. Credit Spread Curves\n				2.2. Credit Spread Measures\n					2.2.1. Fixed-Rate Bond Credit Spread Measures\n					2.2.2. Floating-Rate Note Credit Spread Measures\n					2.2.3. Portfolio Return Impact of Yield Spreads\n			3. Credit Strategies\n				3.1. Bottom-Up Credit Strategies\n					3.1.1. Defining the Credit Universe\n					3.1.2. Bottom-Up Credit Analysis\n					3.1.3. Bottom-Up Relative Value Analysis\n				3.2. Top-Down Credit Strategies\n					3.2.1. Assessing Credit Quality in a Top-Down Approach\n					3.2.2. Sector Allocation in a Top-Down Approach\n				3.3. Factor-Based Credit Strategies\n					3.3.1. Key Factors Affecting Credit Spreads\n					3.3.2. Environmental, Social, and Governance Factors\n			4. Liquidity and Tail Risk\n				4.1. Liquidity Risk\n				4.2. Tail Risk\n			5. Synthetic Credit Strategies\n			6. Credit Spread Curve Strategies\n				6.1. Static Credit Spread Curve Strategies\n				6.2. Dynamic Credit Spread Curve Strategies\n			7. Global Credit Strategies\n			8. Structured Credit\n			9. Fixed-Income Analytics\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Study Session 7. Equity Portfolio Management (1)\n		Reading Assignments\n		Reading 15. Overview of Equity Portfolio Management\n			Learning Outcomes\n			1. Introduction and the Role of Equities in a Portfolio\n				1.1. The Roles of Equities in a Portfolio\n					1.1.1. Capital Appreciation\n					1.1.2. Dividend Income\n					1.1.3. Diversification with Other Asset Classes\n					1.1.4. Hedge Against Inflation\n					1.1.5. Client Considerations for Equities in a Portfolio\n			2. Equity Investment Universe\n				2.1. Segmentation by Size and Style\n				2.2. Segmentation by Geography\n				2.3. Segmentation by Economic Activity\n				2.4. Segmentation of Equity Indexes and Benchmarks\n			3. Income Associated with Owning and Managing an Equity Portfolio\n				3.1. Dividend Income\n				3.2. Securities Lending Income\n				3.3. Ancillary Investment Strategies\n			4. Costs Associated with Owning and Managing an Equity Portfolio\n				4.1. Performance Fees\n				4.2. Administration Fees\n				4.3. Marketing and Distribution Costs\n				4.4. Trading Costs\n				4.5. Investment Approaches and Effects on Costs\n			5. Shareholder Engagement\n				5.1. Benefits of Shareholder Engagement\n				5.2. Disadvantages of Shareholder Engagement\n				5.3. The Role of an Equity Manager in Shareholder Engagement\n					5.3.1. Activist Investing\n					5.3.2. Voting\n			6. Equity Investment Across the Passive-Active Spectrum\n				6.1. Confidence to Outperform\n				6.2. Client Preference\n				6.3. Suitable Benchmark\n				6.4. Client-Specific Mandates\n				6.5. Risks/Costs of Active Management\n				6.6. Taxes\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 16. Passive Equity Investing\n			Learning Outcomes\n			1. Choosing a Benchmark: Indexes as a Basis for Investment\n				1.1. Choosing a Benchmark\n					1.1.1. Indexes as a Basis for Investment\n					1.1.2. Considerations When Choosing a Benchmark Index\n			2. Choosing a Benchmark: Index Construction Methodologies\n			3. Choosing a Benchmark: Factor-Based Strategies\n			4. Approaches to Passive Equity Investing: Pooled Investments\n				4.1. Pooled Investments\n			5. Approaches to Passive Equity Investing: Derivatives-Based Approaches & Index-Based Portfolios\n				5.1. Separately Managed Equity Index-Based Portfolios\n			6. Passive Portfolio Construction\n				6.1. Full Replication\n				6.2. Stratified Sampling\n				6.3. Optimization\n				6.4. Blended Approach\n			7. Tracking Error Management\n				7.1. Tracking Error and Excess Return\n				7.2. Potential Causes of Tracking Error and Excess Return\n				7.3. Controlling Tracking Error\n			8. Sources of Return and Risk in Passive Equity Portfolios\n				8.1. Attribution Analysis\n				8.2. Securities Lending\n				8.3. Investor Activism and Engagement by Passive Managers\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Study Session 8. Equity Portfolio Management (2)\n		Reading Assignments\n		Reading 17. Active Equity Investing: Strategies\n			Learning Outcomes\n			1. Introduction\n			2. Approaches to Active Management\n				2.1. Differences in the Nature of the Information Used\n				2.2. Differences in the Focus of the Analysis\n				2.3. Difference in Orientation to the Data: Forecasting Fundamentals vs. Pattern Recognition\n				2.4. Differences in Portfolio Construction: Judgment vs. Optimization\n			3. Bottom-Up Strategies\n				3.1. Bottom-Up Strategies\n					Business Model and Branding.\n					Competitive Advantages.\n					Company Management.\n					3.1.1. Value-Based Approaches\n						3.1.1.1. Relative Value\n						3.1.1.2. Contrarian Investing\n						3.1.1.3. High-Quality Value\n						3.1.1.4. Income Investing\n						3.1.1.5. Deep-Value Investing\n						3.1.1.6. Restructuring and Distressed Investing\n						3.1.1.7. Special Situations\n					3.1.2. Growth-Based Approaches\n			4. Top-Down Strategies\n				4.1. Country and Geographic Allocation to Equities\n				4.2. Sector and Industry Rotation\n				4.3. Volatility-Based Strategies\n				4.4. Thematic Investment Strategies\n			5. Factor-Based Strategies: Overview\n			6. Factor-Based Strategies: Style Factors\n				6.1. Value\n				6.2. Price Momentum\n				6.3. Growth\n				6.4. Quality\n			7. Factor-Based Strategies: Unconventional Factors\n			8. Activist Strategies\n				8.1. The Popularity of Shareholder Activism\n				8.2. Tactics Used by Activist Investors\n				8.3. Typical Activist Targets\n			9. Other Active Strategies\n				9.1. Strategies Based on Statistical Arbitrage and Market Microstructure\n				9.2. Event-Driven Strategies\n			10. Creating a Fundamental Active Investment Strategy\n				10.1. The Fundamental Active Investment Process\n				10.2. Pitfalls in Fundamental Investing\n					10.2.1. Behavioral Bias\n						10.2.1.1. Confirmation Bias\n						10.2.1.2. Illusion of Control\n						10.2.1.3. Availability Bias\n						10.2.1.4. Loss Aversion\n						10.2.1.5. Overconfidence Bias\n						10.2.1.6. Regret Aversion Bias\n					10.2.2. Value and Growth Traps\n						10.2.2.1. The Value Trap\n						10.2.2.2. The Growth Trap\n			11. Creating a Quantitative Active Investment Strategy\n				11.1. Creating a Quantitative Investment Process\n					11.1.1. Defining the Market Opportunity (Investment Thesis)\n					11.1.2. Acquiring and Processing Data\n					11.1.3. Back-testing the Strategy\n						11.1.3.1. Information Coefficient\n						11.1.3.2. Creating a Multifactor Model\n					11.1.4. Evaluating the Strategy\n					11.1.5. Portfolio Construction Issues in Quantitative Investment\n				11.2. Pitfalls in Quantitative Investment Processes\n					11.2.1. Survivorship Bias, Look-Ahead Bias, Data Mining, and Overfitting\n					11.2.2. Turnover, Transaction Costs, and Short Availability\n			12. Equity Investment Style Classification\n				12.1. Different Approaches to Style Classification\n					12.1.1. Holdings-Based Approaches\n						12.1.1.1. Large-Cap, Mid-Cap, and Small-Cap Classifications\n						12.1.1.2. Measuring Growth, Value, and Core Characteristics\n					12.1.2. Returns-Based Style Analysis\n					12.1.3. Manager Self-Identification\n				12.2. Strengths and Limitations of Style Analysis\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 18. Active Equity Investing: Portfolio Construction\n			Learning Outcomes\n			1. Introduction\n			2. Building Blocks of Active Equity Portfolio Construction\n				2.1. Fundamentals of Portfolio Construction\n				2.2. Building Blocks Used in Portfolio Construction\n					2.2.1. First Building Block: Overweight or Underweight Rewarded Factors\n					2.2.2. Second Building Block: Alpha Skills\n					2.2.3. Third Building Block: Sizing Positions\n					2.2.4. Integrating the Building Blocks: Breadth of Expertise\n			3. The Implementation Process: Portfolio Construction Approaches\n				3.1. The Implementation Process: The Choice of Portfolio Management Approaches\n					3.1.1. Systematic vs. Discretionary\n					3.1.2. Bottom-Up vs. Top-Down\n					3.1.3. A Summary of the Different Approaches\n			4. The Implementation Process: Measures of Benchmark-Relative Risk\n			5. The Implementation Process: Objectives and Constraints\n			6. Absolute vs. Relative Measures of Risk\n				6.1. Absolute vs. Relative Measures of Risk\n					6.1.1. Causes and Sources of Absolute Risk\n					6.1.2. Causes and Sources of Relative/Active Risk\n			7. Determining the Appropriate Level of Risk\n				7.1. Implementation constraints\n				7.2. Limited diversification opportunities\n				7.3. Leverage and its implications for risk\n			8. Allocating the Risk Budget\n			9. Additional Risk Measures Used in Portfolio Construction and Monitoring\n				9.1. Heuristic Constraints\n				9.2. Formal Constraints\n				9.3. The Risks of Being Wrong\n			10. Implicit Cost-Related Considerations in Portfolio Construction\n				10.1. Implicit Costs—Market Impact and the Relevance of Position Size, Assets under Management, and Turnover\n				10.2. Estimating the Cost of Slippage\n			11. The Well-Constructed Portfolio\n			12. Long/Short, Long Extension, and Market-Neutral Portfolio Construction\n				12.1. The Merits of Long-Only Investing\n					12.1.1. Long-term risk premiums\n					12.1.2. Capacity and scalability\n					12.1.3. Limited legal liability\n					12.1.4. Regulatory\n					12.1.5. Transactional complexity\n					12.1.6. Management costs\n					12.1.7. Personal ideology\n				12.2. Long/Short Portfolio Construction\n				12.3. Long Extension Portfolio Construction\n				12.4. Market-Neutral Portfolio Construction\n				12.5. Benefits and Drawbacks of Long/Short Strategies\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Glossary\n2022 CFA Program Level III Volume 4: Alternative Investment, Portfolio Management, and Private Wealth Management\n	Title Page\n	Table of Contents\n	How to Use the CFA Program Curriculum\n		Background on the CBOK\n		Organization of the Curriculum\n		Features of the Curriculum\n			End of Reading Questions/Solutions\n			Glossary\n			LOS Self-Check\n			Source Material\n			Errata\n		Designing Your Personal Study Program\n			Create a Schedule\n		CFA Institute Learning Ecosystem (LES)\n			Structured and Adaptive Study Plans\n			Flashcards and Game Center\n			Discussion Board\n			Practice Question Bank\n			Mock Exams\n		Prep Providers\n		Feedback\n	Portfolio Management\n		Study Sessions\n		Topic Level Learning Outcome\n	Study Session 9. Alternative Investments for Portfolio Management\n		Reading Assignments\n		Reading 19. Hedge Fund Strategies\n			Learning Outcomes\n			1. Introduction and Classification of Hedge Fund Strategies\n				1.1. Classification of Hedge Funds and Strategies\n			2. Equity Strategies: Long/Short Equity\n				2.1. Long/Short Equity\n					2.1.1. Investment Characteristics\n					2.1.2. Strategy Implementation\n			3. Equity Strategies: Dedicated Short Selling and Short-Biased\n				3.1. Investment Characteristics\n				3.2. Strategy Implementation\n			4. Equity Strategies: Equity Market Neutral\n				4.1. Investment Characteristics\n				4.2. Strategy Implementation\n			5. Event-Driven Strategies: Merger Arbitrage\n				5.1. Merger Arbitrage\n					5.1.1. Investment Characteristics\n					5.1.2. Strategy Implementation\n			6. Event-Driven Strategies: Distressed Securities\n				6.1. Investment Characteristics\n				6.2. Strategy Implementation\n			7. Relative Value Strategies: Fixed Income Arbitrage\n				7.1. Fixed-Income Arbitrage\n					7.1.1. Investment Characteristics\n					7.1.2. Strategy Implementation\n			8. Relative Value Strategies: Convertible Bond Arbitrage\n				8.1. Investment Characteristics\n				8.2. Strategy Implementation\n			9. Opportunistic Strategies: Global Macro Strategies\n				9.1. Global Macro Strategies\n					9.1.1. Investment Characteristics\n					9.1.2. Strategy Implementation\n			10. Opportunistic Strategies: Managed Futures\n				10.1. Investment Characteristics\n				10.2. Strategy Implementation\n			11. Specialist Strategies\n				11.1. Volatility Trading\n					11.1.1. Investment Characteristics and Strategy Implementation\n				11.2. Reinsurance/Life Settlements\n					11.2.1. Investment Characteristics and Strategy Implementation\n			12. Multi-Manager Strategies\n				12.1. Fund-of-Funds\n					12.1.1. Investment Characteristics\n					12.1.2. Strategy Implementation\n				12.2. Multi-Strategy Hedge Funds\n					12.2.1. Investment Characteristics\n					12.2.2. Strategy Implementation\n			13. Analysis of Hedge Fund Strategies using a Conditional Factor Risk Model\n				13.1. Conditional Factor Risk Model\n			14. Evaluating Equity Hedge Fund Strategies: Application\n			15. Evaluating Multi-Manager Hedge Fund Strategies: Application\n			16. Portfolio Contribution of Hedge Fund Strategies\n				16.1. Performance Contribution to a 60/40 Portfolio\n				16.2. Risk Metrics\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 20. Asset Allocation to Alternative Investments\n			Learning Outcomes\n			1. Introduction and The Role of Alternative Investments in a Multi-Asset Portfolio\n				1.1. The Role of Alternative Investments in a Multi-Asset Portfolio\n					1.1.1. The Role of Private Equity in a Multi-Asset Portfolio\n					1.1.2. The Role of Hedge Funds in a Multi-Asset Portfolio\n					1.1.3. The Role of Real Assets in a Multi-Asset Portfolio\n					1.1.4. The Role of Commercial Real Estate in a Multi-Asset Portfolio\n					1.1.5. The Role of Private Credit in a Multi-Asset Portfolio\n			2. Diversifying Equity Risk\n				2.1. Volatility Reduction over the Short Time Horizon\n				2.2. Risk of Not Meeting the Investment Goals over the Long Time Horizon\n			3. Traditional Approaches to Asset Classification\n				3.1. Traditional Approaches to Asset Classification\n					3.1.1. A Liquidity-Based Approach to Defining the Opportunity Set\n					3.1.2. An Approach Based on Expected Performance under Distinct Macroeconomic Regimes\n			4. Risk-Based Approaches to Asset Classification and Comparing Risk-Based and Traditional Approaches\n				4.1. Illustration: Asset Allocation and Risk-Based Approaches\n					Portfolio A.\n					Portfolio B.\n				4.2. Comparing Risk-Based and Traditional Approaches\n			5. Risk Considerations, Return Expectations and Investment Vehicle\n				5.1. Risk Considerations\n					Short-only strategy:\n					Option payouts:\n				5.2. Return Expectations\n				5.3. Investment Vehicle\n					Direct investment in a limited partnership:\n					Funds of funds (FOFs):\n					SMAs/funds of one:\n					Mutual funds/UCITS/publicly traded funds:\n			6. Liquidity\n				6.1. Liquidity Risks Associated with the Investment Vehicle\n					Secondary markets:\n					Understanding a drawdown structure:\n				6.2. Liquidity Risks Associated with the Underlying Investments\n					Equity-oriented hedge funds:\n					Event-driven hedge funds:\n					Relative value hedge funds:\n					Leverage:\n			7. Fees and Expenses, Tax Considerations, and Other Considerations\n				7.1. Tax Considerations\n				7.2. Other Considerations\n			8. Suitability Considerations\n				8.1. Investment Horizon\n				8.2. Expertise\n				8.3. Governance\n				8.4. Transparency\n			9. Asset Allocation Approaches and Statistical Properties and Challenges of Asset Returns\n				9.1. Statistical Properties and Challenges of Asset Returns\n					9.1.1. Stale Pricing and Unsmoothing\n					9.1.2. Skewness and Fat Tails\n			10. Monte Carlo Simulation\n				10.1. Simulating Skewed and Fat-Tailed Financial Variables\n				10.2. Simulation for Long-Term Horizon Risk Assessment\n			11. Portfolio Optimization\n				11.1. Mean–Variance Optimization without and with Constraints\n				11.2. Mean–CVaR Optimization\n			12. Risk Factor-Based Optimization\n			13. Liquidity Planning and Achieving and Maintaining the Strategic Asset Allocation\n				13.1. Achieving and Maintaining the Strategic Asset Allocation\n			14. Managing the Capital Calls and Preparing for the Unexpected\n				14.1. Preparing for the Unexpected\n			15. Monitoring the Investment Program\n				15.1. Overall Investment Program Monitoring\n				15.2. Performance Evaluation\n				15.3. Monitoring the Firm and the Investment Process\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Study Session 10. Private Wealth Management (1)\n		Reading Assignments\n		Reading 21. Overview of Private Wealth Management\n			Learning Outcomes\n			1. Introduction and Private Clients Versus Institutional Clients\n				1.1. Private Clients versus Institutional Clients\n					1.1.1. Investment Objectives\n					1.1.2. Constraints\n						1.1.2.1. Time horizon\n						1.1.2.2. Scale\n						1.1.2.3. Taxes\n					1.1.3. Other Distinctions\n						1.1.3.1. Investment Governance\n						1.1.3.2. Investment Sophistication\n						1.1.3.3. Regulation\n						1.1.3.4. Uniqueness and Complexity\n			2. Understanding Private Clients: Information Needed in Advising Private Clients\n				2.1. Information Needed in Advising Private Clients\n					2.1.1. Personal Information\n					2.1.2. Financial Information\n					2.1.3. Private Client Tax Considerations\n						2.1.3.1. Common Tax Categories\n						2.1.3.2. Basic Tax Strategies\n					2.1.4. Other Relevant Information\n			3. Client Goals\n				3.1. Planned Goals\n				3.2. Unplanned Goals\n				3.3. The Wealth Manager’s Role\n			4. Private Client Risk Tolerance\n				4.1. Risk Tolerance Questionnaire\n				4.2. Risk Tolerance Conversation\n				4.3. Risk Tolerance with Multiple Goals\n			5. Technical and Soft Skills for Wealth Managers\n				5.1. Technical Skills\n				5.2. Soft Skills\n			6. Investment Planning, and Capital Sufficiency Analysis\n				6.1. Capital Sufficiency Analysis\n					6.1.1. Methods for Evaluating Capital Sufficiency\n					6.1.2. Inputs to Capital Sufficiency Analysis\n					6.1.3. Interpreting Monte Carlo Simulation Results\n			7. Retirement Planning\n				7.1. Retirement Stage of Life\n					7.1.2. Analyzing Retirement Goals\n						7.1.2.1. Mortality Tables\n						7.1.2.2. Annuities\n						7.1.2.3. Monte Carlo Simulation Revisited\n					7.1.3. Behavioral Considerations in Retirement Planning\n			8. Investment Policy Statement\n				8.1. Parts of the Investment Policy Statement\n					8.1.1. Background and Investment Objectives\n					8.1.2. Investment Parameters\n						8.1.2.1. Risk Tolerance\n						8.1.2.2. Investment Time Horizon\n						8.1.2.3. Asset Class Preferences\n						8.1.2.4. Other Investment Preferences\n						8.1.2.5. Liquidity Preferences\n						8.1.2.6. Constraints\n					8.1.3. Portfolio Asset Allocation\n					8.1.4. Portfolio Management\n						8.1.4.1. Discretionary Authority\n						8.1.4.2. Rebalancing\n						8.1.4.3. Tactical Changes\n						8.1.4.4. Implementation\n					8.1.5. Duties and Responsibilities\n						8.1.5.1. Wealth Manager Responsibilities\n						8.1.5.2. IPS Review\n					8.1.6. IPS Appendix\n						8.1.6.1. Modeled Portfolio Behavior\n						8.1.6.2. Capital Market Expectations\n			9. Sample Investment Policy Statement\n			10. Portfolio Construction and Allocation and Investments for Private Wealth Clients\n				10.1. Portfolio Allocation and Investments for Private Wealth Clients\n					10.1.1. Portfolio Construction—Traditional Approach\n					10.1.2. Portfolio Construction—Goals-Based Investing Approach\n			11. Portfolio Reporting and Review\n				11.1. Portfolio Reporting\n				11.2. Portfolio Review\n			12. Evaluating The Success of an Investment Program\n				12.1. Goal Achievement\n				12.2. Process Consistency\n				12.3. Portfolio Performance\n				12.4. Definitions of Success\n			13. Ethical and Compliance Considerations in Private Wealth Management\n				13.1. Ethical Considerations\n					13.1.1. Fiduciary Duty and Suitability\n					13.1.2. Know Your Customer (KYC)\n					13.1.3. Confidentiality\n					13.1.4. Conflicts of Interest\n				13.2. Compliance Considerations\n			14. Private Client Segments\n				14.1. Mass Affluent Segment\n				14.2. High-Net-Worth Segment\n				14.3. Ultra-High-Net-Worth Segment\n				14.4. Robo-Advisors\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 22. Topics in Private Wealth Management\n			Learning Outcomes\n			1. Introduction\n			2. General Principles of Taxation: Components of Return and Tax Status of the Account\n				2.1. Taxation of the Components of Return\n					2.1.1. Interest, Dividends, and Withholding Taxes\n					2.1.2. Capital Gains Taxes\n					2.1.3. Real Estate Taxes\n				2.2. The Tax Status of the Account\n			3. The Jurisdiction that Applies to the Investor\n			4. Measuring Tax Efficiency with After-Tax Returns\n				4.1. Tax Efficiency of Various Asset Classes and Investment Strategies\n				4.2. Calculating After-Tax Returns\n					4.2.1. After-Tax Holding Period Returns\n					4.2.2. After-Tax Post-Liquidation Returns\n					4.2.3. After-Tax Excess Returns\n					4.2.4. Tax-Efficiency Ratio\n			5. Taxable, Tax-Exempt, and Tax-Deferred Accounts: Capital Accumulation and Asset Location\n				5.1. Capital Accumulation in Taxable, Tax-Deferred, and Tax-Exempt Accounts\n				5.2. Asset Location\n			6. Taxable, Tax-Exempt, and Tax-Deferred Accounts: Decumulation Strategies and Charitable Giving Strategies\n				6.1. Tax Considerations in Charitable Giving\n			7. Tax Management Strategies and Basic Tax Strategies\n				7.1. Basic Portfolio Tax Management Strategies\n			8. Application of Tax Management Strategies\n				8.1. Investment Vehicles\n				8.2. Tax Loss Harvesting\n				8.3. Quantitative Tax Management\n			9. Managing Concentrated Portfolios and Risk and Tax Considerations in Managing Concentrated Single-Asset Positions\n				9.1. Risk and Tax Considerations in Managing Concentrated Single-Asset Positions\n					9.1.1. Approaches to Managing the Risk of Concentrated Positions\n			10. Strategies for Managing Concentrated Positions in Public Equities\n				10.1. Staged Diversification and Completion Portfolios\n					Let’s explore how this might work using Michael Stark’s situation.\n				10.2. Tax-Optimized Equity Strategies—Equity Monetization, Collars, and Call Writing\n				10.3. Tax-Free Exchanges\n				10.4. Charitable Remainder Trust\n			11. Strategies for Managing Concentrated Positions in Privately Owned Businesses and Strategies for Managing Concentrated Positions in Real Estate\n				11.1. Personal Line of Credit Secured by Company Shares\n				11.2. Leveraged Recapitalization\n				11.3. Employee Stock Ownership Plan\n				11.4. Strategies for Managing Concentrated Positions in Real Estate\n				11.5. Mortgage Financing\n				11.6. Real Estate Monetization for the Charitably Inclined—An Asset Location Strategy\n			12. Directing and Transferring Wealth and Objectives of Gift and Estate Planning\n				12.1. Objectives of Gift and Estate Planning\n			13. Gift and Estate Planning Strategies, Introduction to Estate Planning: Wills, Probate and Legal Systems, and Lifetime Gifts and Testamentary Bequests\n				13.1. Introduction to Estate Planning: Wills, Probate, and Legal Systems\n				13.2. Lifetime Gifts and Testamentary Bequests\n				13.3. Efficiency of Lifetime Gifts versus Testamentary Bequests\n			14. Estate Planning Tools: Trusts, Foundations, Life Insurance, Companies\n			15. Managing Wealth Across Generations, General Principles of Family Governance, Family Conflict Resolution, and Family Dynamics in the Context of Business Exit\n				15.1. General Principles of Family Governance\n				15.2. Family Conflict Resolution\n				15.3. Family Dynamics in the Context of Business Exit\n			16. Planning for the Unexpected\n				16.1. Divorce\n				16.2. Incapacity\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Study Session 11. Private Wealth Management (2)\n		Reading Assignments\n		Reading 23. Risk Management for Individuals\n			Learning Outcomes\n			1. Introduction\n			2. Human Capital, Financial Capital, and Economic Net Worth\n				2.1. Human Capital\n				2.2. Financial Capital\n					2.2.1. Personal Assets\n					2.2.2. Investment Assets\n					2.2.3. Publicly Traded Marketable Assets\n					2.2.4. Non-Publicly Traded Marketable Assets\n						2.2.4.1. Real Estate\n						2.2.4.2. Annuities\n						2.2.4.3. Cash-Value Life Insurance\n						2.2.4.4. Business Assets\n						2.2.4.5. Collectibles\n					2.2.5. Non-Marketable Assets\n						2.2.5.1. Employer Pension Plans (Vested)\n						2.2.5.2. Government Pensions\n					2.2.6. Account Type\n				2.3. Economic Net Worth\n			3. A Framework for Individual Risk Management\n				3.1. The Risk Management Strategy for Individuals\n					3.1.1. Specify the Objective\n					3.1.2. Identify Risks\n					3.1.3. Evaluate Risks and Select Appropriate Methods to Manage the Risks\n					3.1.4. Monitor Outcomes and Risk Exposures and Make Appropriate Adjustments in Methods\n				3.2. Financial Stages of Life\n					3.2.1. Education Phase\n					3.2.2. Early Career\n					3.2.3. Career Development\n					3.2.4. Peak Accumulation\n					3.2.5. Pre-retirement\n					3.2.6. Early Retirement\n					3.2.7. Late Retirement\n			4. The Individual Balance Sheet\n				4.1. Traditional Balance Sheet\n				4.2. Economic (Holistic) Balance Sheet\n				4.3. Changes in Economic Net Worth\n			5. Individual Risk Exposures\n				5.1. Earnings Risk\n				5.2. Premature Death Risk\n				5.3. Longevity Risk\n				5.4. Property Risk\n				5.5. Liability Risk\n				5.6. Health Risk\n			6. Life Insurance: Uses, Types and Elements\n				6.1. Life Insurance\n					6.1.1. Uses of Life Insurance\n					6.1.2. Types of Life Insurance\n					6.1.3. Basic Elements of a Life Insurance Policy\n			7. Life Insurance - Pricing, Policy Cost Comparison and Determining Amount Needed\n				7.1. Mortality Expectations\n				7.2. Calculation of the Net Premium and Gross Premium\n				7.3. Cash Values and Policy Reserves\n				7.4. Consumer Comparisons of Life Insurance Costs\n				7.5. How Much Life Insurance Does One Need?\n			8. Other Types of Insurance\n				8.1. Property Insurance\n					8.1.1. Homeowner’s Insurance\n					8.1.2. Automobile Insurance\n				8.2. Health/Medical Insurance\n				8.3. Liability Insurance\n				8.4. Other Types of Insurance\n			9. Annuities: Types, Structure and Classification\n				9.1. Parties to an Annuity Contract\n				9.2. Classification of Annuities\n					9.2.1. Deferred Variable Annuities\n					9.2.2. Deferred Fixed Annuities\n					9.2.3. Immediate Variable Annuities\n					9.2.4. Immediate Fixed Annuities\n					9.2.5. Advanced Life Deferred Annuities\n			10. Annuities: Advantages and Disadvantages of Fixed and Variable Annuities\n				10.1. Volatility of Benefit Amount\n				10.2. Flexibility\n				10.3. Future Market Expectations\n				10.4. Fees\n				10.5. Inflation Concerns\n				10.6. Payout Methods\n				10.7. Annuity Benefit Taxation\n				10.8. Appropriateness of Annuities\n			11. Risk Management Implementation: Determining the Optimal Strategy and Case Analysis\n				11.1. Determining the Optimal Risk Management Strategy\n				11.2. Analyzing an Insurance Program\n					11.2.1. Current Insurance Plan\n						Life Insurance.\n						Health Insurance.\n						Disability Insurance.\n						Long-Term Care Insurance.\n						Property Insurance.\n					11.2.2. Program Review\n						Life Insurance.\n					11.2.3. Recommendations\n						Health Insurance.\n						Disability Insurance.\n						Long-Term Care Insurance.\n						Property Insurance.\n						Longevity Insurance.\n			12. The Effect of Human Capital on Asset Allocation and Risk Reduction\n				12.1. Asset Allocation and Risk Reduction\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Glossary\n2022 CFA Program Level III Volume 5: Institutional Investors, Other Topics in Portfolio Management, and Cases\n	Title Page\n	Table of Contents\n	How to Use the CFA Program Curriculum\n		Background on the CBOK\n		Organization of the Curriculum\n		Features of the Curriculum\n			End of Reading Questions/Solutions\n			Glossary\n			LOS Self-Check\n			Source Material\n			Errata\n		Designing Your Personal Study Program\n			Create a Schedule\n		CFA Institute Learning Ecosystem (LES)\n			Structured and Adaptive Study Plans\n			Flashcards and Game Center\n			Discussion Board\n			Practice Question Bank\n			Mock Exams\n		Prep Providers\n		Feedback\n	Portfolio Management\n		Study Sessions\n		Topic Level Learning Outcome\n	Study Session 12. Portfolio Management for Institutional Investors\n		Reading Assignment\n		Reading 24. Portfolio Management for Institutional Investors\n			Learning Outcomes\n			1. Institutional Investors: Types and Common Characteristics\n				1.1. Institutional Investors: Common Characteristics\n					1.1.1. Scale\n					1.1.2. Long-Term Investment Horizon\n					1.1.3. Regulatory Frameworks\n					1.1.4. Governance Framework\n					1.1.5. Principal–Agent Issues\n			2. Overview of Investment Policy\n			3. Pension Funds: Types and Stakeholders\n				3.1. Stakeholders\n					3.1.1. Defined Benefit Pension Plans\n					3.1.2. Defined Contribution Pension Plans\n			4. Pension Funds: Liabilities, Investment Horizon, and Liquidity Needs\n				4.1. Liabilities and Investment Horizon\n					4.1.1. Defined Benefit Pension Plans\n					4.1.2. Defined Contribution Pension Plans\n				4.2. Liquidity Needs\n			5. Pension Funds: External Constraints\n				5.1. Legal and Regulatory Constraints\n				5.2. Tax and Accounting Constraints\n			6. Pension Funds: Risk Considerations\n			7. Pension Funds: Investment Objectives and Asset Allocation\n				7.1. Investment Objectives\n					7.1.1. Defined Benefit Pension Plans\n					7.1.2. Defined Contribution Pension Plans\n				7.2. Asset Allocation by Pension Plans\n			8. Sovereign Wealth Funds: Types and Stakeholders\n				8.1. Stakeholders\n			9. Sovereign Wealth Funds: Liabilities, Investment Horizon, Liquidity Needs, and External Constraints\n				9.1. Liabilities and Investment Horizons\n					9.1.1. Budget Stabilization Funds\n					9.1.2. Development Funds\n					9.1.3. Savings Funds\n					9.1.4. Reserve Funds\n					9.1.5. Pension Reserve Funds\n				9.2. Liquidity Needs\n					9.2.1. Budget Stabilization Funds\n					9.2.2. Development Funds\n					9.2.3. Savings Funds\n					9.2.4. Reserve Funds\n					9.2.5. Pension Reserve Funds\n				9.3. External Constraints Affecting Investment\n					9.3.1. Legal and Regulatory Constraints\n					9.3.2. Tax and Accounting Constraints\n			10. Sovereign Wealth Funds: Investment Objectives and Asset Allocation\n				10.1. Investment Objectives\n					10.1.1. Budget Stabilization Funds\n					10.1.2. Development Funds\n					10.1.3. Savings Funds\n					10.1.4. Reserve Funds\n					10.1.5. Pension Reserve Funds\n				10.2. Asset Allocation by Sovereign Wealth Funds\n			11. University Endowments and Private Foundations: Introduction and External Constraints\n				University Endowments\n				Private Foundations\n				11.1. External Constraints Affecting Investment\n					11.1.1. Legal and Regulatory Constraints\n					11.1.2. Tax and Accounting Constraints\n			12. University Endowments: Stakeholders, Liabilities, Investment Horizon, and Liquidity Needs\n				12.1. University Endowments—Liabilities and Investment Horizon\n				12.2. University Endowments—Liquidity Needs\n			13. Private Foundations: Types, Stakeholders, Liabilities, Investment Horizon, and Liquidity Needs\n				13.1. Private Foundations—Liabilities and Investment Horizon\n				13.2. Private Foundations—Liquidity Needs\n			14. University Endowments: Investment Objectives and Asset Allocation\n				14.1. University Endowments\n				14.2. Asset Allocation\n					14.2.1. University Endowments\n			15. Private Foundations: Investment Objectives and Asset Allocation\n				15.1. Private Foundations\n			16. Banks and Insurers: Introduction and External Constraints\n				Banks\n				Insurers\n				16.1. External Constraints Affecting Investment\n					16.1.1. Legal and Regulatory Constraints\n					16.1.2. Accounting and Tax Considerations\n			17. Banks: Stakeholders, Liabilities, Investment Horizon, and Liquidity Needs\n				17.1. Banks—Liabilities and Investment Horizon\n				17.2. Banks—Liquidity Needs\n			18. Insurers: Stakeholders, Liabilities, Investment Horizon, and Liquidity Needs\n				18.1. Insurers—Liabilities and Investment Horizon\n					18.1.1. Life Insurers\n					18.1.2. Property & Casualty Insurers\n				18.2. Insurers—Liquidity Needs\n			19. Banks and Insurers: Investment Objectives\n				19.1. Banks\n				19.2. Insurers\n			20. Banks and Insurers: Balance Sheet Management and Investment Considerations\n			21. Banks and Insurers: Investment Strategies and Effects on Asset and Liability Volatility\n			22. Banks and Insurers: Implementation of Portfolio Decisions\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Study Session 13. Trading, Performance Evaluation, and Manager Selection\n		Reading Assignments\n		Reading 25. Trade Strategy and Execution\n			Learning Outcomes\n			1. Introduction\n			2. Motivations to Trade\n				2.1. Profit Seeking\n					2.1.1. Michigan Index of Consumer Sentiment (short-term profit seeking)\n					2.1.2. Value manager (long-term profit seeking)\n				2.2. Risk Management/Hedging Needs\n				2.3. Cash Flow Needs\n				2.4. Corporate Actions/Index Reconstitutions/Margin Calls\n			3. Trading Strategies and Strategy Selection\n				3.1. Trade Strategy Inputs\n					3.1.1. Order Characteristics\n					3.1.2. Security Characteristics\n					3.1.3. Market Conditions\n					3.1.4. User-Based Considerations: Trading Cost Risk Aversion\n					3.1.5. Market Impact and Execution Risk\n						Trader’s dilemma.\n			4. Reference Prices\n				4.1. Pre-Trade Benchmarks\n					4.1.1. Decision price\n					4.1.2. Previous close\n					4.1.3. Opening price\n					4.1.4. Arrival price\n				4.2. Intraday Benchmarks\n					4.2.1. VWAP\n					4.2.2. TWAP\n				4.3. Post-Trade Benchmarks\n					4.3.1. Closing price\n				4.4. Price Target Benchmarks\n			5. Trading Strategies\n				5.1. Short-Term Alpha Trade\n				5.2. Long-Term Alpha Trade\n				5.3. Risk Rebalance Trade\n				5.4. Client Redemption Trade\n				5.5. New Mandate Trade\n			6. Trade Execution\n				6.1. Trade Implementation Choices\n				6.2. Algorithmic Trading\n					6.2.1. Execution algorithms\n					6.2.2. Profit-seeking algorithms\n					6.2.3. Execution Algorithm Classifications\n						6.2.3.1. Scheduled (POV, VWAP, TWAP)\n						6.2.3.2. Liquidity seeking\n						6.2.3.3. Arrival price\n						6.2.3.4. Dark strategies/liquidity aggregators\n						6.2.3.5. Smart order routers\n							Market orders.\n							Limit orders.\n			7. Comparison of Markets\n				7.1. Equities\n				7.2. Fixed Income\n				7.3. Exchange-Traded Derivatives\n				7.4. Over-the-Counter Derivatives\n				7.5. Spot Foreign Exchange (Currency)\n			8. Trade Cost Measurement\n				8.1. Implementation Shortfall\n				8.2. Expanded Implementation Shortfall\n					Improving Execution Performance\n					Delay Cost\n						Scenario 1:\n						Scenario 2:\n					Opportunity Cost\n						Scenario 1:\n						Scenario 2:\n			9. Evaluating Trade Execution\n				9.1. Arrival Price\n				9.2. VWAP\n				9.3. TWAP\n				9.4. Market on Close\n				9.5. Market-Adjusted Cost\n					Buying in a Rising Market\n				9.6. Added Value\n			10. Trade Governance\n				10.1. Meaning of Best Order Execution within the Relevant Regulatory Framework\n				10.2. Factors Used to Determine the Optimal Order Execution Approach\n				10.3. List of Eligible Brokers and Execution Venues\n				10.4. Process Used to Monitor Execution Arrangements\n			Summary\n			Practice Problems\n			Solutions\n		Reading 26. Portfolio Performance Evaluation\n			Learning Outcomes\n			1. Introduction\n			2. Introduction to Performance Evaluation and Attribution\n				2.1. Performance Attribution\n			3. Equity Return Attribution\n				3.1. A Simple Return Attribution Example\n				3.2. Equity Return Attribution—The Brinson–Hood–Beebower Model\n				3.3. Brinson–Fachler Model\n			4. Fixed- Income Return Attribution\n				4.1. Fixed-Income Return Attribution\n					4.1.1. Exposure Decomposition—Duration Based\n					4.1.2. Yield Curve Decomposition—Duration Based\n					4.1.3. Yield Curve Decomposition—Full Repricing\n					4.1.4. Fixed-Income Attribution—Worked Example\n			5. Risk Attribution\n			6. Return Attribution Analysis at Multiple Levels\n				6.1. Macro Attribution—An Example\n				6.2. Micro Attribution—An Example\n			7. Asset-Based and Liability-Based Benchmarks\n				7.1. Asset-Based Benchmarks\n			8. Benchmark Properties, Evaluating Benchmark Quality, and Choosing the Correct Benchmark\n				8.1. Evaluating Benchmark Quality: Analysis Based on a Decomposition of Portfolio Holdings and Returns\n				8.2. Importance of Choosing the Correct Benchmark\n			9. Benchmarking Alternative Investments\n				9.1. Benchmarking Hedge Fund Investments\n				9.2. Benchmarking Real Estate Investments\n				9.3. Benchmarking Private Equity\n				9.4. Benchmarking Commodity Investments\n				9.5. Benchmarking Managed Derivatives\n				9.6. Benchmarking Distressed Securities\n			10. Performance Appraisal: Risk-Based Measures\n				10.1. Distinguishing Investment Skill from Luck\n				10.2. Appraisal Measures\n					10.2.1. The Sharpe Ratio\n					10.2.2. The Treynor Ratio\n					10.2.3. The Information Ratio\n					10.2.4. The Appraisal Ratio\n					10.2.5. The Sortino Ratio\n			11. Performance Appraisal: Capture Ratios and Drawdowns\n				11.1. Capture Ratios\n				11.2. Drawdown\n			12. Evaluation of Investment Manager Skill\n				12.1. Performance Attribution Analysis\n				12.2. Appraisal Measures\n				12.3. Sample Evaluation of Skill\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 27. Investment Manager Selection\n			Learning Outcomes\n			1. Introduction\n			2. A Framework for Investment Manager Search and Selection\n				2.1. Defining the Manager Universe\n			3. Type I and Type II Errors in Manager Selection\n				3.1. Qualitative considerations in Type I and Type II errors\n				3.2. Performance implications of Type I and Type II errors\n			4. Quantitative Elements of Manager Search and Selection\n				4.1. Style Analysis\n			5. Capture Ratios and Drawdowns in Manager Evaluation\n			6. The Manager\'s Investment Philosophy\n				6.1. Investment Philosophy\n				6.2. Investment Personnel\n			7. The Manager\'s Investment Decision-making Process\n				7.1. Signal Creation (Idea Generation)\n				7.2. Signal Capture (Idea Implementation)\n				7.3. Portfolio Construction\n				7.4. Monitoring the Portfolio\n			8. Operational Due Diligence\n				8.1. Firm\n				8.2. Investment Vehicle\n				8.3. Evaluation of the Investment’s Terms\n					8.3.1. Liquidity\n			9. Management Fees\n				9.1. Assets under Management Fees\n				9.2. Performance-Based Fees\n			Summary\n			References\n			Practice Problems\n			Solutions\n	Study Session 14. Cases in Portfolio Management and Risk Management\n		Reading Assignments\n		Reading 28. Case Study in Portfolio Management: Institutional\n			Learning Outcomes\n			1. Introduction\n			2. Background: Liquidity Management\n				2.1. Liquidity Profiling and Time-to-Cash\n				2.2. Rebalancing, Commitments\n				2.3. Stress Testing\n				2.4. Derivatives\n				2.5. Earning an Illiquidity Premium\n			3. QUINCO Case: Background\n				3.1. Quadrivium University Investment Company (QUINCO)\n				3.2. Investment Strategy: Background and Evolution\n					3.2.1. Current Scenario\n			4. QUINCO Case: Strategic Asset Allocation\n			5. QUINCO Case: Liquidity Management\n			6. QUINCO Case: Asset Manager Selection\n			7. QUINCO Case: Tactical Asset Allocation\n			8. QUINCO Case: Asset Allocation Rebalancing\n			9. QUINCO Case: ESG Integration\n				Student Activity\n				QUINCO ESG Approach\n				QUINCO\n				Investment Response\n			Summary\n			References\n			Practice Problems\n			Solutions\n		Reading 29. Case Study in Risk Management: Private Wealth\n			Learning Outcomes\n			1. Introduction and Case Background\n				1.1. Background of Eurolandia\n					1.1.1. Government Pension Plan\n					1.1.2. Health System\n					1.1.3. Unemployment Insurance\n					1.1.4. Disability Insurance\n					1.1.5. Education\n					1.1.6. Social Security Contributions and Tax Rates\n				1.2. The Schmitt Family in Their Early Career Stage\n					1.2.1. Initial Case Facts\n			2. Identification and Analysis of Risk Exposures: Early Career Stage\n				2.1. Specify the Schmitts’ financial objectives\n				2.2. Identification of risk exposures\n				2.3. Analysis of identified risk\n					2.3.1. Earnings risk\n					2.3.2. Premature death risk\n					2.3.3. Car accident and repair costs\n					2.3.4. Liability risk\n					2.3.5. House purchase\n			3. Risk Management Recommendations: Early Career Stage\n				3.1. Recommendations for managing risks\n					3.1.1. Earnings risk\n					3.1.2. Premature death risk\n					3.1.3. Car accident and repair costs\n					3.1.4. Risks to lifestyle arising from the proposed house purchase\n					3.1.5. Other risks\n				3.2. Monitoring outcomes and risk exposures\n			4. Risk Management Considerations associated with Home Purchase\n				4.1. Review of risk Management Arrangements Following the House Purchase\n			5. Identification and Analysis of Risk Exposures: Career Development Stage\n				5.1. Case Facts: The Schmitts Are 45\n				5.2. Financial Objectives in the Career Development Stage\n				5.3. Identification and Evaluation of Risks in the Career Development Stage\n					5.3.1. Assessment of earnings risk\n					5.3.2. Analysis of the investment portfolio risks\n					5.3.3. Analysis of the retirement savings plans\n					5.3.4. Other risks\n			6. Risk Management Recommendations: Career Development Stage\n				6.1. Disability insurance\n				6.2. Life insurance\n				6.3. Investment risk recommendations\n				6.4. Retirement planning recommendation\n				6.5. Additional suggestions\n			7. Identification and Analysis of Risk Exposures: Peak Accumulation Stage\n				7.1. Review of Objectives, Risks, and Methods of Addressing Them\n					7.1.1. Financial objectives\n					7.1.2. Review of Risks and Related Risk Management Methods\n			8. Assessment of and Recommendations concerning Risk to Retirement Lifestyle and Bequest Goals: Peak Accumulation Stage\n				8.1. Analysis of Investment Portfolio\n					8.1.1. The goal of supporting Peter\n					8.1.2. Leaving inheritance to Roxane\n				8.2. Analysis of Asset Allocation\n					8.2.1. Peter’s care\n					8.2.2. Leaving an inheritance for Roxane\n				8.3. Recommendations for Risk Management at Peak Accumulation Stage\n					8.3.1. Risk to earnings\n					8.3.2. Recommendations for retirement savings\n					8.3.3. Recommendations for the investment portfolio\n			9. Identification and Analysis of Retirement Objectives, Assets and Drawdown Plan: Retirement Stage\n				9.1. Key Issues and Objectives\n				9.2. Analysis of Retirement Assets and Drawdown Plan\n			10. Income and Investment Portfolio Recommendations: Retirement Stage\n				10.1. Investment Portfolio Analysis and Recommendations\n				10.2. The Advisor’s Recommendations for Investment Portfolio in Retirement\n			Summary\n			Practice Problems\n			Solutions\n		Reading 30. Integrated Cases in Risk Management: Institutional\n			Learning Outcomes\n			1. Introduction\n			2. Financial Risks Faced by Institutional Investors\n				2.1. Long-Term Perspective\n				2.2. Dimensions of Financial Risk Management\n					2.2.1. Top-down vs. bottom-up risk analysis\n					2.2.2. Portfolio-level risk vs. asset-class-specific risk\n					2.2.3. Return-based vs. holdings-based risk approaches\n					2.2.4. Absolute vs. relative risk\n					2.2.5. Long-term vs. short-term risk metrics\n					2.2.6. Quantitative vs. qualitative risks\n					2.2.7. Pre- and post-investment risk assessment\n				2.3. Risk Considerations for Long-Term Investors\n				2.4. Risks Associated with Illiquid Asset Classes\n					2.4.1. Cash flow modeling\n					2.4.2. Addressing return smoothing behavior of illiquid asset classes\n					2.4.3. Direct vs. fund investments in illiquid asset classes\n				2.5. Managing Liquidity Risk\n				2.6. Enterprise Risk Management for Institutional Investors\n			3. Environmental and Social Risks Faced by Institutional Investors\n				3.1. Universal Ownership, Externalities, and Responsible Investing\n				3.2. Material Environmental Issues for an Institutional Investor\n					3.2.1. Physical climate risks\n					3.2.2. Impact on real assets\n					3.2.3. Climate transition risks\n					3.2.4. Climate opportunities\n						Climate mitigation\n						Climate adaptation\n				3.3. Material Social Issues for an Institutional Investor\n					3.3.1. Managing community relations and the social license to operate\n					3.3.2. Labor issues in the supply chain\n					3.3.3. The “just” transition\n			Case Study\n				1. Case Study: Introduction\n				2. Case Study: Background\n				3. R-SWF’S Investments: 1.0\n					Initial Case Facts (1.0)\n				Investment Committee Meeting 1.0\n					Participants\n						Chief Investment Officer:\n					Infrastructure Investment Discussion\n						Head of Infrastructure:\n						Chief Investment Officer:\n						Head of Infrastructure:\n						Chief Investment Officer:\n					Private Equity Investment Discussion\n						Head of PE:\n						Chief Investment Officer:\n						Head of PE:\n						Chief Investment Officer:\n						Head of Risk:\n						Head of PE:\n						Chief Investment Officer:\n						Head of Risk:\n						Head of PE:\n						Chief Investment Officer:\n						Head of Equities:\n						Head of PE:\n						Chief Investment Officer:\n						Head of Risk:\n						Chief Investment Officer:\n						Head of Equities:\n						Head of PE:\n						Chief Investment Officer:\n						Head of PE:\n						Head of Equities:\n						Chief Investment Officer:\n						Head of Risk:\n						Head of PE:\n						Head of Equities:\n						Chief Investment Officer:\n						Head of PE:\n					General Discussion on Risk\n						Chief Investment Officer:\n						Head of Risk:\n						Head of PE:\n						Head of Infrastructure:\n						Head of Risk:\n						Head of Infrastructure:\n						Head of Risk:\n						Head of Infrastructure:\n						Head of Risk:\n						Head of Equities:\n						Head of Infrastructure\n						Head of Risk:\n						Head of Infrastructure:\n						Chief Investment Officer:\n						Head of Infrastructure:\n						Head of PE:\n						Head of Risk:\n						Head of PE:\n						Head of Infrastructure:\n						Chief Investment Officer:\n						Head of Risk:\n						Head of Infrastructure:\n						Head of PE:\n						Head of Equities:\n						Head of Infrastructure:\n						Head of PE:\n						Chief Investment Officer\n						Head of Risk:\n						Head of Equities:\n						Head of Risk:\n						Head of Infrastructure:\n					Voting on Infrastructure Investment\n						Chief Investment Officer:\n						Head of Infrastructure:\n						Chief Investment Officer:\n						Head of Risk:\n						Chief Investment Officer:\n						Head of PE:\n						Chief Investment Officer:\n						Head of Equities:\n						Chief Investment Officer:\n					Voting on Private Equity Investment\n						Chief Investment Officer:\n						Head of PE:\n						Chief Investment Officer:\n						Head of Equities:\n						Chief Investment Officer:\n						Head of Infrastructure:\n						Chief Investment Officer:\n						Head of Risk:\n						Chief Investment Officer:\n						Head of PE:\n						Head of Risk:\n						Head of PE:\n						Chief Investment Officer:\n					—The End—\n				4. R-SWF’S Investments: 2.0\n					Extension of Case Facts (2.0)\n				Investment Committee Meeting 2.0\n					Participants\n						Chief Investment Officer:\n						Head of Infrastructure:\n						Chief Investment Officer:\n						Head of PE:\n						Chief Investment Officer:\n						Head of PE:\n						Head of Risk:\n						Head of PE:\n						Head of Risk:\n						Head of PE:\n						Chief Investment Officer:\n						Head of PE:\n						Head of Risk:\n						Chief Investment Officer:\n						Head of PE:\n						Chief Investment Officer:\n						Head of Risk:\n						Head of Infrastructure:\n						Head of Equities:\n						Head of Infrastructure:\n						Chief Investment Officer:\n						Head of PE:\n						Head of Infrastructure:\n						Chief Investment Officer:\n						Head of Risk:\n						Chief Investment Officer:\n						Head of Risk:\n						Head of Infrastructure:\n						Head of Risk:\n						Head of PE:\n						Head of Equities:\n						Head of PE:\n						Chief Investment Officer:\n						Head of Equities:\n						Chief Investment Officer:\n						Head of Infrastructure:\n						Chief Investment Officer:\n						Head of Risk:\n						Chief Investment Officer:\n						Head of Equities:\n						Chief Investment Officer:\n					—The End—\n				5. R-SWF’S Investments: 3.0\n					Second Extension of Case Facts (3.0)\n						Update on Infrastructure Investment\n						Update on PE Investment\n			References\n	Glossary\n2022 CFA Program Level III Volume 6: Ethical and Professional Standards\n	Title Page\n	Table of Contents\n	How to Use the CFA Program Curriculum\n		Background on the CBOK\n		Organization of the Curriculum\n		Features of the Curriculum\n			End of Reading Questions/Solutions\n			Glossary\n			LOS Self-Check\n			Source Material\n			Errata\n		Designing Your Personal Study Program\n			Create a Schedule\n		CFA Institute Learning Ecosystem (LES)\n			Structured and Adaptive Study Plans\n			Flashcards and Game Center\n			Discussion Board\n			Practice Question Bank\n			Mock Exams\n		Prep Providers\n		Feedback\n	Ethical and Professional Standards\n		Study Sessions\n		Topic Level Learning Outcome\n	Study Session 15. Ethical and Professional Standards (1)\n		Reading Assignments\n		Reading 31. Code of Ethics and Standards of Professional Conduct\n			Learning Outcomes\n			Preface\n				Evolution of the CFA Institute Code of Ethics and Standards of Professional Conduct\n				Standards of Practice Handbook\n				Summary of Changes in the Eleventh Edition\n					Inclusion of Updated CFA Institute Mission\n					Updated Code of Ethics Principle\n					New Standard Regarding Responsibilities of Supervisors [IV(C)]\n					Additional Requirement under the Standard for Communication with Clients and Prospective Clients [V(B)]\n					Modification to Standard VII(A)\n					General Guidance and Example Revision\n				CFA Institute Professional Conduct Program\n				Adoption of the Code and Standards\n				Acknowledgments\n			Ethics and the Investment Industry\n				Why Ethics Matters\n					Ethics, Society, and the Capital Markets\n					Capital Market Sustainability and the Actions of One\n					The Relationship between Ethics and Regulations\n					Applying an Ethical Framework\n					Commitment to Ethics by Firms\n					Ethical Commitment of CFA Institute\n			CFA Institute Code of Ethics and Standards of Professional Conduct\n				Preamble\n				The Code of Ethics\n				Standards of Professional Conduct\n		Reading 32. Guidance for Standards I–VII\n			Learning Outcomes\n			Standard I(A): Professionalism - Knowledge of the Law\n				Standard I(A) Knowledge of the Law\n				Guidance\n					Relationship between the Code and Standards and Applicable Law\n					Participation in or Association with Violations by Others\n					Investment Products and Applicable Laws\n			Standard I(A): Recommended Procedures\n				Members and Candidates\n				Distribution Area Laws\n				Legal Counsel\n				Dissociation\n				Firms\n			Standard I(A): Application of the Standard\n				Example 1 (Notification of Known Violations):\n				Example 2 (Dissociating from a Violation):\n				Example 3 (Dissociating from a Violation):\n				Example 4 (Following the Highest Requirements):\n				Example 5 (Following the Highest Requirements):\n				Example 6 (Laws and Regulations Based on Religious Tenets):\n				Example 7 (Reporting Potential Unethical Actions):\n				Example 8 (Failure to Maintain Knowledge of the Law):\n			Standard I(B): Professionalism - Independence and Objectivity\n				Guidance\n					Buy-Side Clients\n					Fund Manager and Custodial Relationships\n					Investment Banking Relationships\n					Performance Measurement and Attribution\n					Public Companies\n					Credit Rating Agency Opinions\n					Influence during the Manager Selection/Procurement Process\n					Issuer-Paid Research\n					Travel Funding\n			Standard I(B): Recommended Procedures\n			Standard I(B): Application of the Standard\n				Example 1 (Travel Expenses):\n				Example 2 (Research Independence):\n				Example 3 (Research Independence and Intrafirm Pressure):\n				Example 4 (Research Independence and Issuer Relationship Pressure):\n				Example 5 (Research Independence and Sales Pressure):\n				Example 6 (Research Independence and Prior Coverage):\n				Example 7 (Gifts and Entertainment from Related Party):\n				Example 8 (Gifts and Entertainment from Client):\n				Example 9 (Travel Expenses from External Manager):\n				Example 10 (Research Independence and Compensation Arrangements):\n				Example 11 (Recommendation Objectivity and Service Fees):\n				Example 12 (Recommendation Objectivity):\n				Example 13 (Influencing Manager Selection Decisions):\n				Example 14 (Influencing Manager Selection Decisions):\n				Example 15 (Fund Manager Relationships):\n				Example 16 (Intrafirm Pressure):\n			Standard I(C): Professionalism – Misrepresentation\n				Guidance\n					Impact on Investment Practice\n					Performance Reporting\n					Social Media\n					Omissions\n					Plagiarism\n					Work Completed for Employer\n			Standard I(C): Recommended Procedures\n				Factual Presentations\n				Qualification Summary\n				Verify Outside Information\n				Maintain Webpages\n				Plagiarism Policy\n			Standard I(C): Application of the Standard\n				Example 1 (Disclosure of Issuer-Paid Research):\n				Example 2 (Correction of Unintentional Errors):\n				Example 3 (Noncorrection of Known Errors):\n				Example 4 (Plagiarism):\n				Example 5 (Misrepresentation of Information):\n				Example 6 (Potential Information Misrepresentation):\n				Example 7 (Plagiarism):\n				Example 8 (Plagiarism):\n				Example 9 (Plagiarism):\n				Example 10 (Plagiarism):\n				Example 11 (Misrepresentation of Information):\n				Example 12 (Misrepresentation of Information):\n				Example 13 (Avoiding a Misrepresentation):\n				Example 14 (Misrepresenting Composite Construction):\n				Example 15 (Presenting Out-of-Date Information):\n				Example 16 (Overemphasis of Firm Results):\n			Standard I(D): Professionalism – Misconduct\n				Guidance\n			Standard I(D): Recommended Procedures\n			Standard I(D): Application of the Standard\n				Example 1 (Professionalism and Competence):\n				Example 2 (Fraud and Deceit):\n				Example 3 (Fraud and Deceit):\n				Example 4 (Personal Actions and Integrity):\n				Example 5 (Professional Misconduct):\n			Standard II(A): Integrity of Capital Markets - Material Nonpublic Information\n				Standard II(A) Material Nonpublic Information\n				Guidance\n					What Is “Material” Information?\n					What Constitutes “Nonpublic” Information?\n					Mosaic Theory\n					Social Media\n					Using Industry Experts\n					Investment Research Reports\n			Standard II(A): Recommended Procedures\n				Achieve Public Dissemination\n				Adopt Compliance Procedures\n				Adopt Disclosure Procedures\n				Issue Press Releases\n				Firewall Elements\n				Appropriate Interdepartmental Communications\n				Physical Separation of Departments\n				Prevention of Personnel Overlap\n				A Reporting System\n				Personal Trading Limitations\n				Record Maintenance\n				Proprietary Trading Procedures\n				Communication to All Employees\n			Standard II(A): Application of the Standard\n				Example 1 (Acting on Nonpublic Information):\n				Example 2 (Controlling Nonpublic Information):\n				Example 3 (Selective Disclosure of Material Information):\n				Example 4 (Determining Materiality):\n				Example 5 (Applying the Mosaic Theory):\n				Example 6 (Applying the Mosaic Theory):\n				Example 7 (Analyst Recommendations as Material Nonpublic Information):\n				Example 8 (Acting on Nonpublic Information):\n				Example 9 (Mosaic Theory):\n				Example 10 (Materiality Determination):\n				Example 11 (Using an Expert Network):\n				Example 12 (Using an Expert Network):\n			Standard II(B): Integrity of Capital Markets - Market Manipulation\n				Guidance\n					Information-Based Manipulation\n					Transaction-Based Manipulation\n			Standard II(B): Application of the Standard\n				Example 1 (Independent Analysis and Company Promotion):\n				Example 2 (Personal Trading Practices and Price):\n				Example 3 (Creating Artificial Price Volatility):\n				Example 4 (Personal Trading and Volume):\n				Example 5 (“Pump-Priming” Strategy):\n				Example 6 (Creating Artificial Price Volatility):\n				Example 7 (Pump and Dump Strategy):\n				Example 8 (Manipulating Model Inputs):\n				Example 9 (Information Manipulation):\n			Standard III(A): Duties to Clients - Loyalty, Prudence, and Care\n				Standard III(A) Loyalty, Prudence, and Care\n				Guidance\n					Understanding the Application of Loyalty, Prudence, and Care\n					Identifying the Actual Investment Client\n					Developing the Client’s Portfolio\n					Soft Commission Policies\n					Proxy Voting Policies\n			Standard III(A): Recommended Procedures\n				Regular Account Information\n				Client Approval\n				Firm Policies\n			Standard III(A): Application of the Standard\n				Example 1 (Identifying the Client—Plan Participants):\n				Example 2 (Client Commission Practices):\n				Example 3 (Brokerage Arrangements):\n				Example 4 (Brokerage Arrangements):\n				Example 5 (Client Commission Practices):\n				Example 6 (Excessive Trading):\n				Example 7 (Managing Family Accounts):\n				Example 8 (Identifying the Client):\n				Example 9 (Identifying the Client):\n				Example 10 (Client Loyalty):\n				Example 11 (Execution-Only Responsibilities):\n			Standard III(B): Duties to Clients - Fair Dealing\n				Guidance\n					Investment Recommendations\n					Investment Action\n			Standard III(B): Recommended Procedures\n				Develop Firm Policies\n				Disclose Trade Allocation Procedures\n				Establish Systematic Account Review\n				Disclose Levels of Service\n			Standard III(B): Application of the Standard\n				Example 1 (Selective Disclosure):\n				Example 2 (Fair Dealing between Funds):\n				Example 3 (Fair Dealing and IPO Distribution):\n				Example 4 (Fair Dealing and Transaction Allocation):\n				Example 5 (Selective Disclosure):\n				Example 6 (Additional Services for Select Clients):\n				Example 7 (Minimum Lot Allocations):\n				Example 8 (Excessive Trading):\n				Example 9 (Limited Social Media Disclosures):\n				Example 10 (Fair Dealing between Clients):\n			Standard III(C): Duties to Clients – Suitability\n				Guidance\n					Developing an Investment Policy\n					Understanding the Client’s Risk Profile\n					Updating an Investment Policy\n					The Need for Diversification\n					Addressing Unsolicited Trading Requests\n					Managing to an Index or Mandate\n			Standard III(C): Recommended Procedures\n				Investment Policy Statement\n				Regular Updates\n				Suitability Test Policies\n			Standard III(C): Application of the Standard\n				Example 1 (Investment Suitability—Risk Profile):\n				Example 2 (Investment Suitability—Entire Portfolio):\n				Example 3 (IPS Updating):\n				Example 4 (Following an Investment Mandate):\n				Example 5 (IPS Requirements and Limitations):\n				Example 6 (Submanager and IPS Reviews):\n				Example 7 (Investment Suitability—Risk Profile):\n				Example 8 (Investment Suitability):\n			Standard III(D): Duties to Clients - Performance Presentation\n				Guidance\n			Standard III(D): Recommended Procedures\n				Apply the GIPS Standards\n				Compliance without Applying GIPS Standards\n			Standard III(D): Application of the Standard\n				Example 1 (Performance Calculation and Length of Time):\n				Example 2 (Performance Calculation and Asset Weighting):\n				Example 3 (Performance Presentation and Prior Fund/Employer):\n				Example 4 (Performance Presentation and Simulated Results):\n				Example 5 (Performance Calculation and Selected Accounts Only):\n				Example 6 (Performance Attribution Changes):\n				Example 7 (Performance Calculation Methodology Disclosure):\n				Example 8 (Performance Calculation Methodology Disclosure):\n			Standard III(E): Duties to Clients - Preservation of Confidentiality\n				Guidance\n					Status of Client\n					Compliance with Laws\n					Electronic Information and Security\n					Professional Conduct Investigations by CFA Institute\n			Standard III(E): Recommended Procedures\n				Communicating with Clients\n			Standard III(E): Application of the Standard\n				Example 1 (Possessing Confidential Information):\n				Example 2 (Disclosing Confidential Information):\n				Example 3 (Disclosing Possible Illegal Activity):\n				Example 4 (Disclosing Possible Illegal Activity):\n				Example 5 (Accidental Disclosure of Confidential Information):\n			Standard IV(A): Duties to Employers – Loyalty\n				Standard IV(A) Loyalty\n				Guidance\n					Employer Responsibilities\n					Independent Practice\n					Leaving an Employer\n					Use of Social Media\n					Whistleblowing\n					Nature of Employment\n			Standard IV(A): Recommended Procedures\n				Competition Policy\n				Termination Policy\n				Incident-Reporting Procedures\n				Employee Classification\n			Standard IV(A): Application of the Standard\n				Example 1 (Soliciting Former Clients):\n				Example 2 (Former Employer’s Documents and Files):\n				Example 3 (Addressing Rumors):\n				Example 4 (Ownership of Completed Prior Work):\n				Example 5 (Ownership of Completed Prior Work):\n				Example 6 (Soliciting Former Clients):\n				Example 7 (Starting a New Firm):\n				Example 8 (Competing with Current Employer):\n				Example 9 (Externally Compensated Assignments):\n				Example 10 (Soliciting Former Clients):\n				Example 11 (Whistleblowing Actions):\n				Example 12 (Soliciting Former Clients):\n				Example 13 (Notification of Code and Standards):\n				Example 14 (Leaving an Employer):\n				Example 15 (Confidential Firm Information):\n			Standard IV(B): Duties to Employers - Additional Compensation Arrangements\n				Guidance\n			Standard IV(B): Recommended Procedures\n			Standard IV(B): Application of the Standard\n				Example 1 (Notification of Client Bonus Compensation):\n				Example 2 (Notification of Outside Compensation):\n				Example 3 (Prior Approval for Outside Compensation):\n			Standard IV(C): Duties to Employers - Responsibilities of Supervisors\n				Guidance\n					System for Supervision\n					Supervision Includes Detection\n			Standard IV(C): Recommended Procedures\n				Codes of Ethics or Compliance Procedures\n				Adequate Compliance Procedures\n				Implementation of Compliance Education and Training\n				Establish an Appropriate Incentive Structure\n			Standard IV(C): Application of the Standard\n				Example 1 (Supervising Research Activities):\n				Example 2 (Supervising Research Activities):\n				Example 3 (Supervising Trading Activities):\n				Example 4 (Supervising Trading Activities and Record Keeping):\n				Example 5 (Accepting Responsibility):\n				Example 6 (Inadequate Procedures):\n				Example 7 (Inadequate Supervision):\n				Example 8 (Supervising Research Activities):\n				Example 9 (Supervising Research Activities):\n			Standard V(A): Investment Analysis, Recommendations, and Actions - Diligence and Reasonable Basis\n				Standard V(A) Diligence and Reasonable Basis\n				Guidance\n					Defining Diligence and Reasonable Basis\n					Using Secondary or Third-Party Research\n					Using Quantitatively Oriented Research\n					Developing Quantitatively Oriented Techniques\n					Selecting External Advisers and Subadvisers\n					Group Research and Decision Making\n			Standard V(A): Recommended Procedures\n			Standard V(A): Application of the Standard\n				Example 1 (Sufficient Due Diligence):\n				Example 2 (Sufficient Scenario Testing):\n				Example 3 (Developing a Reasonable Basis):\n				Example 4 (Timely Client Updates):\n				Example 5 (Group Research Opinions):\n				Example 6 (Reliance on Third-Party Research):\n				Example 7 (Due Diligence in Submanager Selection):\n				Example 8 (Sufficient Due Diligence):\n				Example 9 (Sufficient Due Diligence):\n				Example 10 (Sufficient Due Diligence):\n				Example 11 (Use of Quantitatively Oriented Models):\n				Example 12 (Successful Due Diligence/Failed Investment):\n				Example 13 (Quantitative Model Diligence):\n				Example 14 (Selecting a Service Provider):\n				Example 15 (Subadviser Selection):\n				Example 16 (Manager Selection):\n				Example 17 (Technical Model Requirements):\n			Standard V(B): Investment Analysis, Recommendations, and Actions - Communication with Clients and Prospective Clients\n				Guidance\n					Informing Clients of the Investment Process\n					Different Forms of Communication\n					Identifying Risks and Limitations\n					Report Presentation\n					Distinction between Facts and Opinions in Reports\n			Standard V(B): Recommended Procedures\n			Standard V(B): Application of the Standard\n				Example 1 (Sufficient Disclosure of Investment System):\n				Example 2 (Providing Opinions as Facts):\n				Example 3 (Proper Description of a Security):\n				Example 4 (Notification of Fund Mandate Change):\n				Example 5 (Notification of Fund Mandate Change):\n				Example 6 (Notification of Changes to the Investment Process):\n				Example 7 (Notification of Changes to the Investment Process):\n				Example 8 (Notification of Changes to the Investment Process):\n				Example 9 (Sufficient Disclosure of Investment System):\n				Example 10 (Notification of Changes to the Investment Process):\n				Example 11 (Notification of Errors):\n				Example 12 (Notification of Risks and Limitations):\n				Example 13 (Notification of Risks and Limitations):\n				Example 14 (Notification of Risks and Limitations):\n			Standard V(C): Investment Analysis, Recommendations, and Actions - Record Retention\n				Guidance\n					New Media Records\n					Records Are Property of the Firm\n					Local Requirements\n			Standard V(C): Recommended Procedures\n			Standard V(C): Application of the Standard\n				Example 1 (Record Retention and IPS Objectives and Recommendations):\n				Example 2 (Record Retention and Research Process):\n				Example 3 (Records as Firm, Not Employee, Property):\n			Standard VI(A): Conflicts of Interest - Disclosure of Conflicts\n				Standard VI(A) Disclosure of Conflicts\n				Guidance\n					Disclosure of Conflicts to Employers\n					Disclosure to Clients\n					Cross-Departmental Conflicts\n					Conflicts with Stock Ownership\n					Conflicts as a Director\n			Standard VI(A): Recommended Procedures\n			Standard VI(A): Application of the Standard\n				Example 1 (Conflict of Interest and Business Relationships):\n				Example 2 (Conflict of Interest and Business Stock Ownership):\n				Example 3 (Conflict of Interest and Personal Stock Ownership):\n				Example 4 (Conflict of Interest and Personal Stock Ownership):\n				Example 5 (Conflict of Interest and Compensation Arrangements):\n				Example 6 (Conflict of Interest, Options, and Compensation Arrangements):\n				Example 7 (Conflict of Interest and Compensation Arrangements):\n				Example 8 (Conflict of Interest and Directorship):\n				Example 9 (Conflict of Interest and Personal Trading):\n				Example 10 (Conflict of Interest and Requested Favors):\n				Example 11 (Conflict of Interest and Business Relationships):\n				Example 12 (Disclosure of Conflicts to Employers):\n			Standard VI(B): Conflicts of Interest - Priority of Transactions\n				Guidance\n					Avoiding Potential Conflicts\n					Personal Trading Secondary to Trading for Clients\n					Standards for Nonpublic Information\n					Impact on All Accounts with Beneficial Ownership\n			Standard VI(B): Recommended Procedures\n			Standard VI(B): Application of the Standard\n				Example 1 (Personal Trading):\n				Example 2 (Trading for Family Member Account):\n				Example 3 (Family Accounts as Equals):\n				Example 4 (Personal Trading and Disclosure):\n				Example 5 (Trading Prior to Report Dissemination):\n			Standard VI(C): Conflicts of Interest - Referral Fees\n				Guidance\n			Standard VI(C): Recommended Procedures\n			Standard VI(C): Application of the Standard\n				Example 1 (Disclosure of Referral Arrangements and Outside Parties):\n				Example 2 (Disclosure of Interdepartmental Referral Arrangements):\n				Example 3 (Disclosure of Referral Arrangements and Informing Firm):\n				Example 4 (Disclosure of Referral Arrangements and Outside Organizations):\n				Example 5 (Disclosure of Referral Arrangements and Outside Parties):\n			Standard VII(A): Responsibilities as a CFA Institute Member or CFA Candidate - Conduct as Participants in CFA Institute Programs\n				Standard VII(A) Conduct as Participants in CFA Institute Programs\n				Guidance\n					Confidential Program Information\n					Additional CFA Program Restrictions\n					Expressing an Opinion\n			Standard VII(A): Application of the Standard\n				Example 1 (Sharing Exam Questions):\n				Example 2 (Bringing Written Material into Exam Room):\n				Example 3 (Writing after Exam Period End):\n				Example 4 (Sharing Exam Content):\n				Example 5 (Sharing Exam Content):\n				Example 6 (Sharing Exam Content):\n				Example 7 (Discussion of Exam Grading Guidelines and Results):\n				Example 8 (Compromising CFA Institute Integrity as a Volunteer):\n				Example 9 (Compromising CFA Institute Integrity as a Volunteer):\n			Standard VII(B): Responsibilities as a CFA Institute Member or CFA Candidate - Reference to CFA Institute, the CFA Designation, and the CFA Program\n				Guidance\n					CFA Institute Membership\n					Using the CFA Designation\n					Referring to Candidacy in the CFA Program\n			Standard VII(B): Recommended Procedures\n			Standard VII(B): Application of the Standard\n				Example 1 (Passing Exams in Consecutive Years):\n				Example 2 (Right to Use CFA Designation):\n				Example 3 (“Retired” CFA Institute Membership Status):\n				Example 4 (Stating Facts about CFA Designation and Program):\n				Example 5 (Order of Professional and Academic Designations):\n				Example 6 (Use of Fictitious Name):\n			Practice Problems\n			Solutions\n		Reading 33. Application of the Code and Standards: Level III\n			Learning Outcomes\n			1. Introduction\n			2. Sovereign Investment Corporation\n				Anthony Corrales, CFA, Partner, Hedge Fund Investors\n				Ani Mehrotra, CFA, Junior Analyst, National Investments\n				Marcia Lopez\n				David Hockett and Team\n				The Kochanskis\n			3. Castle Biotechnology Case: David Plume, PhD, CFA\n				David Plume, PhD, CFA\n			4. Castle Biotechnology Case: Sandra Benning, CFA and Claris Deacon\n				Claris Deacon\n			5. Lionsgate Limited & Bank of Australia Case: Tony Hill and Team\n				Tony Hill and Team\n			6. Lionsgate Limited & Bank of Australia Case: Rob Portman, CFA; Kirk Graeme, CFA; The Delaney\'s; David Milgram\n				Kirk Graeme, CFA\n				The Delaneys\n				David Milgram\n			7. Gabby Sim\n			Practice Problems\n			Solutions\n	Study Session 16. Ethical and Professional Standards (2)\n		Reading Assignments\n		Reading 34. Asset Manager Code of Professional Conduct\n			Learning Outcomes\n			1. Introduction, Adopting the Code and Claiming Compliance\n				Adopting the Code and Claiming Compliance\n				Acknowledgement of Claim of Compliance to CFA Institute\n			2. General Principles of Conduct and Asset Manager Code of Professional Conduct\n				Asset Manager Code of Professional Conduct\n					A. Loyalty to Clients\n						Managers must:\n					B. Investment Process and Actions\n						Managers must:\n					C. Trading\n						Managers must:\n					D. Risk Management, Compliance, and Support\n						Managers must:\n					E. Performance and Valuation\n						Managers must:\n					F. Disclosures\n						Managers must:\n			3. Appendix 6: A. Loyalty to Clients\n				Appendix 6—Recommendations and Guidance\n				A. Loyalty to Clients\n					Managers must:\n			4. Appendix 6: B. Investment Process and Actions\n				Managers must:\n			5. Appendix 6: C. Trading\n				Managers must:\n			6. Appendix 6: D. Risk Management, Compliance and Support\n				Managers must:\n			7. Appendix 6: E. Performance and Evaluation\n				Managers must:\n			8. Appendix 6: F. Disclosures\n				Managers must:\n			Practice Problems\n			Solutions\n		Reading 35. Overview of the Global Investment Performance Standards\n			Learning Outcomes\n			1. Objective and Scope of the GIPS Standards\n				1.1. Objective and Scope of the GIPS Standards\n					1.1.1. The Need for Global Investment Performance Standards\n					1.1.2. The Scope of the GIPS Standards for Firms\n					1.1.3. Overview of the GIPS Standards\n			2. Fundamentals of Compliance\n				2.1. Definition of the Firm\n				2.2. Definition of Discretion\n				2.3. Other Fundamentals of Compliance\n			3. Time-Weighted Return\n				3.1. Time-Weighted Return\n			4. Miscellaneous Return Calculation Topics\n				4.1. Annualizing Returns\n				4.2. Treatment of Cash Equivalents\n				4.3. Treatment of Expenses and Fees\n				4.4. Valuation Requirements\n			5. Composite Time-Weighted Return Calculations\n				5.1. Composite Time-Weighted Return Calculations\n			6. Composites—Qualifying Portfolios and Defining Investment Strategies\n				6.1. Composites—Defining Investment Strategies\n			7. Composites—Including and Excluding Portfolios\n			8. Presentation and Reporting Requirements for Composites\n				8.1. Minimum Years of Performance\n				8.2. Required Elements of a GIPS Composite Report\n					8.2.1. Dispersion Measures\n				8.3. Portability\n				8.4. Sample Reports\n			9. Verification\n				9.1. Scope of Verification\n				9.2. Verification Process\n			Summary\n			Practice Problems\n			Solutions\n	Glossary\nEnd User License Agreement