2023 CFA Program Curriculum Level III Box Set

2023 CFA© Program Curriculum Level III Volumes 1 Behavioral Finance, Capital Market Expectations, and Asset Allocation (CFA Institute) (Z-Library)
	How to Use the CFA Program Curriculum
		Background on the CBOK
			Organization of the Curriculum
				Features of the Curriculum
				Designing Your Personal Study Program
				CFA Institute Learning Ecosystem (LES)
				Prep Providers
				Feedback
	Portfolio Management
		1
		Behavioral Finance
			1
			The Behavioral Biases of Individuals
				Introduction and Categorizations of Behavioral Biases
					1.1 Categorizations of Behavioral Biases
					1.2 Differences between Cognitive Errors and Emotional Biases
				Cognitive Errors: Belief Perseverance Biases: Conservation Bias and Confirmation Bias
					2.1 Belief Perseverance Biases
				Cognitive Errors: Belief Perseverance Biases – Representativeness
					3.1 Base-­Rate Neglect
					3.2 Sample-­Size Neglect
					3.3 Consequences of Representativeness Bias
					3.4 Detection of and Guidance on Overcoming Representativeness Bias
				Cognitive Errors: Belief Perseverance Biases - Illusion of Control Bias and Hindsight Bias
					4.1 Illusion of control bias
					4.2 Hindsight Bias
				Cognitive Errors: Information Processing Biases
					5.1 Anchoring and Adjustment Bias
					5.2 Mental Accounting Bias
					5.3 Framing Bias
					5.4 Availability Bias
					5.5 Cognitive Errors: Conclusion
				Emotional Biases: Loss Aversion
					6.1 Loss-­Aversion Bias
				Emotional Biases: Overconfidence & Self Control
					7.1 Overconfidence Bias
					7.2 Self-­Control Bias
				Emotional Biases: Status Quo, Endowment, and Regret-­Aversion
					8.1 Status Quo Bias
					8.2 Endowment Bias
					8.3 Regret-­Aversion Bias
					8.4 Emotional Biases: Conclusion
				Summary
				Practice Problems
				Solutions
			2
			Behavioral Finance and Investment Processes
				Introduction and General Discussion of Investor Types
					1.1 General Discussion of Investor Types
				New Developments in Psychographic Modeling: Behavioral Investor Types
					2.1 The Behavioral Alpha Process: A Top-­Down Approach
					2.2 Limitations of Classifying Investors into Various Types
				How Behavioral Factors Affect Adviser-­Client Relations
					3.1 Formulating Financial Goals
					3.2 Maintaining a Consistent Approach
					3.3 Investing as the Client Expects
					3.4 Ensuring Mutual Benefits
					3.5 Limitations of Traditional Risk Tolerance Questionnaires
				How Behavioral Factors Affect Portfolio Construction
					4.1 Inertia and Default
					4.2 Naïve Diversification
					4.3 Company Stock: Investing in the Familiar
					4.4 Excessive Trading
					4.5 Home Bias
				Behavioral Finance and Analyst Forecasts and Overconfidence in Forecasting Skills
					5.1 Overconfidence in Forecasting Skills
				Influence of Company’s Management on Analysis and Analyst Biases in Conducting Research
					6.1 Remedial Actions for Influence of Company’s Management on Analysis
					6.2 Analyst Biases in Conducting Research
					6.3 Remedial Actions for Analyst Biases in Conducting Research
				How Behavioral Factors Affect Committee Decision Making
					7.1 Investment Committee Dynamics
					7.2 Techniques for Structuring and Operating Committees to Address Behavioral Factors
				How Behavioral Finance Influences Market Behavior
					8.1 Defining Market Anomalies
					8.2 Momentum
					8.3 Bubbles and Crashes
					8.4 Value and Growth
				Summary
				Practice Problems
				Solutions
		2
		Capital Market Expectations
			3
			Capital Market Expectations, Part 1: Framework and Macro Considerations
				Introduction & Framework for Developing Capital Market Expectations
					1.1 Framework and Challenges
				Challenges in Forecasting
					2.1 Limitations of Economic Data
					2.2 Data Measurement Errors and Biases
					2.3 The Limitations of Historical Estimates
					2.4 Ex Post Risk Can Be a Biased Measure of Ex Ante Risk
					2.5 Biases in Analysts’ Methods
					2.6 The Failure to Account for Conditioning Information
					2.7 Misinterpretation of Correlations
					2.8 Psychological Biases
					2.9 Model Uncertainty
				Economic and Market Analysis: The Role of Economic Analysis and Analysis of Economic Growth: Exogenous Shocks to Growth
					3.1 The Role of Economic Analysis
					3.2 Analysis of Economic Growth
				Applying Growth Analysis to Capital Market Expectations
					4.1 A Decomposition of GDP Growth and Its Use in Forecasting
					4.2 Anchoring Asset Returns to Trend Growth
				Approaches to Economic Forecasting
					5.1 Econometric Modeling
					5.2 Economic Indicators
					5.3 Checklist Approach
					5.4 Economic Forecasting Approaches: Summary of Strengths and Weaknesses
				Business Cycle Analysis, Phases of the Business Cycle and Market Expectations and the Business Cycle
					6.1 Phases of The Business Cycle
					6.2 Market Expectations and the Business Cycle
				Inflation and Deflation: Trends and Relations to the Business Cycle
				Analysis of Monetary and Fiscal Policies
					8.1 Monetary Policy
				What Happens When Interest Rates Are Zero or Negative? And Implications of Negative Rates for Capital Market Expectations
					9.1 Implications of Negative Interest Rates for Capital Market Expectations
				The Monetary and Fiscal Policy Mix and the Shape of the Yield Curve and the Business Cycle
					10.1 The Shape of the Yield Curve and the Business Cycle
				International Interactions
					11.1 Macroeconomic Linkages
					11.2 Interest Rate/Exchange Rate Linkages
				Summary
				Practice Problems
				Solutions
			4
			Capital Market Expectations, Part 2: Forecasting Asset Class Returns
				Introduction
				Overview of Tools and Approaches
					2.1 The Nature of the Problem
					2.2 Approaches to Forecasting
				Forecasting Fixed Income Returns
					3.1 Applying DCF to Fixed Income
					3.2 The Building Block Approach to Fixed-­Income Returns
				Risks in Emerging Market Bonds
					4.1 Economic Risks/Ability to Pay
					4.2 Political and Legal Risks/Willingness to Pay
				Forecasting Equity Returns
					5.1 Historical Statistics Approach to Equity Returns
					5.2 DCF Approach to Equity Returns
					5.3 Risk Premium Approaches to Equity Returns
					5.4 Risks in Emerging Market Equities
				Forecasting Real Estate Returns
					6.1 Historical Real Estate Returns
					6.2 Real Estate Cycles
					6.3 Capitalization Rates
					6.4 The Risk Premium Perspective on Real Estate Expected Return
					6.5 Real Estate in Equilibrium
					6.6 Public vs. Private Real Estate
					6.7 Long-­Term Housing Returns
				Forecasting Exchange Rates
					7.1 Focus on Goods and Services, Trade, and the Current Account
					7.2 Focus on Capital Flows
				Forecasting Volatility
					8.1 Estimating a Constant VCV Matrix with Sample Statistics
					8.2 VCV Matrices from Multi-­Factor Models
					8.3 Shrinkage Estimation of VCV Matrices
					8.4 Estimating Volatility from Smoothed Returns
					8.5 Time-­Varying Volatility: ARCH Models
				Adjusting a Global Portfolio
					9.1 Macro-­Based Recommendations
					9.2 Quantifying the Views
				Summary
				Practice Problems
				Solutions
		3
		Asset Allocation and Related Decisions in Portfolio Management
			5
			Overview of Asset Allocation
				Introduction and Asset Allocation: Importance in Investment Management
					1.1 Asset Allocation: Importance in Investment Management
				The Investment Governance Background to Asset Allocation
					2.1 Governance Structures
					2.2 Articulating Investment Objectives
					2.3 Allocation of Rights and Responsibilities
					2.4 Investment Policy Statement
					2.5 Asset Allocation and Rebalancing Policy
					2.6 Reporting Framework
					2.7 The Governance Audit
				The Economic Balance Sheet and Asset Allocation
				Approaches to Asset Allocation, Relevant Objectives and Relevant Risk Concepts
					4.1 Relevant Objectives
					4.2 Relevant Risk Concepts
				Modeling Asset Class Risk
				Strategic Asset Allocation
				Strategic Asset Allocation: Asset Only
				Strategic Asset Allocation: Liability Relative
				Strategic Asset Allocation: Goals Based
				Implementation Choices
					10.1 Passive/Active Management of Asset Class Weights
					10.2 Passive/Active Management of Allocations to Asset Classes
					10.3 Risk Budgeting Perspectives in Asset Allocation and Implementation
				Rebalancing: Strategic considerations
					11.1 A Framework for Rebalancing
					11.2 Strategic Considerations in Rebalancing
				Summary
				Practice Problems
				Solutions
			6
			Principles of Asset Allocation
				Introduction
				Developing Asset-­Only Asset Allocations; and Mean-­Variance Optimization: Overview
					2.1 Mean–Variance Optimization: Overview
				Monte Carlo Simulation
				Criticisms of Mean-­Variance Optimization
				Addressing the Criticisms of Mean-­Variance Optimization; Reverse Optimization and Black Litterman Model
					5.1 Reverse Optimization
					5.2 Black–Litterman Model
				Addressing the Criticisms of Mean-­Variance Optimization; Adding Constraints beyond Budget Constraints, Resampled Mean-­Variance Optimizations and Other Non-­Normal Optimization Approaches
					6.1 Resampled Mean–Variance Optimization
					6.2 Other Non-­Normal Optimization Approaches
				Allocating to Less Liquid Asset Classes
				Risk Budgeting
				Factor-­Based Asset Allocation
				Developing Liability-­Relative Asset Allocations; and Characterizing the Liabilities
					10.1 Characterizing the Liabilities
				Approaches to Liability-­Relative Asset Allocation; and Surplus Optimization
					11.1 Surplus Optimization
				Approaches to Liability-­Relative Asset Allocation
					12.1 Hedging/Return-­Seeking Portfolio Approach
					12.2 Integrated Asset–Liability Approach
					12.3 Comparing the Approaches
				Examining the Robustness of Asset Allocation Alternatives
				Factor Modeling in Liability-­Relative Approaches
				Developing Goals-­Based Asset Allocations. The Goals-­Based Asset Allocation Process and Describing Client Goals.
					15.1 The Goals-­Based Asset Allocation Process
					15.2 Describing Client Goals
				Constructing Sub-­Portfolios and the Overall Portfolio
					16.1 The Overall Portfolio
				Revisiting the Module Process in Detail
				Periodically Revisiting the Overall Asset Allocation and Issues Related to Goals-­Based Asset Allocation
					18.1 Issues Related to Goals-­Based Asset Allocation
				Heuristics and Other Approaches to Asset Allocation
					19.1 The “120 minus your age” rule
					19.2 The 60/40 stock/bond heuristic
					19.3 The endowment model
					19.4 Risk parity
					19.5 The 1/N rule
				Portfolio Rebalancing in Practice
				Summary
				Practice Problems
				Solutions
			7
			Asset Allocation with Real-­World Constraints
				Introduction
				Constraints in Asset Allocation and Asset Size
					2.1 Asset Size
				Liquidity
				Time Horizon
					4.1 Changing Human Capital
					4.2 Changing Character of Liabilities
				Regulatory and Other External Constraints
					5.1 Insurance Companies
					5.2 Pension Funds
					5.3 Endowments and Foundations
					5.4 Sovereign Wealth Funds
				Asset Allocation for the Taxable Investor and After-­Tax Portfolio Optimization
					6.1 After-­Tax Portfolio Optimization
				Taxes and Portfolio Rebalancing and Strategies to Reduce Tax Impact
					7.1 Strategies to Reduce Tax Impact
				Revising the Strategic Asset Allocation
					8.1 Goals
					8.2 Constraints
					8.3 Beliefs
				Short-­Term Shifts in Asset Allocation
					9.1 Discretionary TAA
					9.2 Systematic TAA
				Dealing with Behavioral Biases in Asset Allocation
					10.1 Loss Aversion
					10.2 Illusion of Control
					10.3 Mental Accounting
					10.4 Representativeness Bias
					10.5 Framing Bias
					10.6 Availability Bias
				Summary
				Practice Problems
				Solutions
2023 CFA© Program Curriculum Level III Volumes 2 Derivatives, Currency Management, and Fixed Income (CFA Institute) (Z-Library)
	How to Use the CFA Program Curriculum
		Background on the CBOK
			Organization of the Curriculum
				Features of the Curriculum
				Designing Your Personal Study Program
				CFA Institute Learning Ecosystem (LES)
				Prep Providers
				Feedback
	Portfolio Management
		4
		Derivatives and Currency Management
			8
			Options Strategies
				Introduction
				Position Equivalencies
					2.1 Synthetic Forward Position
					2.2 Synthetic Put and Call
				Covered Calls and Protective Puts
					3.1 Investment Objectives of Covered Calls
				Investment Objectives of Protective Puts
					4.1 Loss Protection/Upside Preservation
					4.2 Profit and Loss at Expiration
				Equivalence to Long Asset/Short Forward Position
					5.1 Writing Puts
				Risk Reduction Using Covered Calls and Protective Puts
					6.1 Covered Calls
					6.2 Protective Puts
					6.3 Buying Calls and Writing Puts on a Short Position
				Spreads and Combinations
					7.1 Bull Spreads and Bear Spreads
				Straddle
					8.1 Collars
					8.2 Calendar Spread
				Implied Volatility and Volatility Skew
				Investment Objectives and Strategy Selection
					10.1 The Necessity of Setting an Objective
					10.2 Criteria for Identifying Appropriate Option Strategies
				Uses of Options in Portfolio Management
					11.1 Covered Call Writing
					11.2 Put Writing
					11.3 Long Straddle
					11.4 Collar
					11.5 Calendar Spread
				Hedging an Expected Increase in Equity Market Volatility
					12.1 Establishing or Modifying Equity Risk Exposure
				Summary
				Practice Problems
				Solutions
			9
			Swaps, Forwards, and Futures Strategies
				Managing Interest Rate Risk with Swaps
					1.1 Changing Risk Exposures with Swaps, Futures, and Forwards
				Managing Interest Rate Risk with Forwards, Futures and Fixed-­Income Futures
					2.1 Fixed-­Income Futures
				Managing Currency Exposure
					3.1 Currency Swaps
					3.2 Currency Forwards and Futures
				Managing Equity Risk
					4.1 Equity Swaps
					4.2 Equity Forwards and Futures
					4.3 Cash Equitization
				Volatility Derivatives: Futures and Options
					5.1 Volatility Futures and Options
				Volatility Derivatives: Variance Swaps
				Using Derivatives to Manage Equity Exposure and Tracking Error
					Solution:
					7.1 Cash Equitization
				Using Derivatives in Asset Allocation
					8.1 Changing Allocations between Asset Classes Using Futures
					8.2 Rebalancing an Asset Allocation Using Futures
					8.3 Changing Allocations between Asset Classes Using Swaps
				Using Derivatives to Infer Market Expectations
					9.1 Using Fed Funds Futures to Infer the Expected Average Federal Funds Rate
					9.2 Inferring Market Expectations
				Summary
				Practice Problems
				Solutions:
			10
			Currency Management: An Introduction
				Introduction
				Review of Foreign Exchange Concepts
					2.1 Spot Markets
					2.2 Forward Markets
					2.3 FX Swap Markets
					2.4 Currency Options
				Currency Risk and Portfolio Risk and Return
					3.1 Return Decomposition
					3.2 Volatility Decomposition
				Strategic Decisions in Currency Management: Overview
					4.1 The Investment Policy Statement
					4.2 The Portfolio Optimization Problem
					4.3 Choice of Currency Exposures
				Strategic Decisions in Currency Management: Spectrum of Currency Risk Management Strategies
					5.1 Passive Hedging
					5.2 Discretionary Hedging
					5.3 Active Currency Management
					5.4 Currency Overlay
				Strategic Decisions in Currency Management: Formulating a Currency Management Program
				Active Currency Management: Based on Economic Fundamentals, Technical Analysis and the Carry Trade
					7.1 Active Currency Management Based on Economic Fundamentals
					7.2 Active Currency Management Based on Technical Analysis
					7.3 Active Currency Management Based on the Carry Trade
				Active Currency Management: Based on Volatility Trading
				Currency Management Tools: Forward Contracts, FX Swaps and Currency Options
					9.1 Forward Contracts
					9.2 Currency Options
				Currency Management Strategies
					10.1 Over-/Under-­Hedging Using Forward Contracts
					10.2 Protective Put Using OTM Options
					10.3 Risk Reversal (or Collar)
					10.4 Put Spread
					10.5 Seagull Spread
					10.6 Exotic Options
					10.7 Section Summary
				Hedging Multiple Foreign Currencies
					11.1 Cross Hedges and Macro Hedges
					11.2 Minimum-­Variance Hedge Ratio
					11.3 Basis Risk
				Currency Management Tools and Strategies: A Summary
				Currency Management for Emerging Market Currencies
					13.1 Special Considerations in Managing Emerging Market Currency Exposures
					13.2 Non-­Deliverable Forwards
				Summary
				Practice Problems
				Solutions
		5
		Fixed-­Income Portfolio Management (1)
			11
			Overview of Fixed-­Income Portfolio Management
				Introduction
				Roles of Fixed-­Income Securities in Portfolios
					2.1 Diversification Benefits
					2.2 Benefits of Regular Cash Flows
					2.3 Inflation-­Hedging Potential
				Classifying Fixed-­Income Mandates
					3.1 Liability-­Based Mandates
					3.2 Total Return Mandates
					3.3 Fixed-­Income Mandates with ESG Considerations
				Fixed-­Income Portfolio Measures
					4.1 Portfolio Measures of Risk and Return
					4.2 Correlations between Fixed-­Income Sectors
					4.3 Use of Measures of Risk and Return in Portfolio Management
				Bond Market Liquidity
					5.1 Liquidity among Bond Market Sub-­Sectors
					5.2 The Effects of Liquidity on Fixed-­Income Portfolio Management
				A Model for Fixed-­Income Returns
					6.1 Decomposing Expected Returns
					6.2 Estimation of the Inputs
					6.3 Limitations of the Expected Return Decomposition
				Leverage
					7.1 Using Leverage
					7.2 Methods for Leveraging Fixed-­Income Portfolios
					7.3 Risks of Leverage
				Fixed-­Income Portfolio Taxation
					8.1 Principles of Fixed-­Income Taxation
					8.2 Investment Vehicles and Taxes
				Summary
				Practice Problems
				Solutions
			12
			Liability-­Driven and Index-­Based Strategies
				Introduction
				Liability-­Driven Investing
					2.1 Liability-­Driven Investing vs. Asset-­Driven Liabilities
					2.2 Types of Liabilities
				Interest Rate Immunization: Managing the Interest Rate Risk of a Single Liability
					3.1 A Numerical Example of Immunization
				Interest Rate Immunization: Managing the Interest Rate Risk of Multiple Liabilities
					4.1 Cash Flow Matching
					4.2 Laddered Portfolios
					4.3 Duration Matching
					4.4 Derivatives Overlay
					4.5 Contingent Immunization
				Liability-­Driven Investing: An Example of a Defined Benefit Pension Plan
					5.1 Model Assumptions
					5.2 Model Inputs
					5.3 Calculating Durations
					5.4 Addressing the Duration Gap
				Risks in Liability-­Driven Investing
					6.1 Model Risk in Liability-­Driven Investing
					6.2 Spread Risk in Liability-­Driven Investing
					6.3 Counterparty Credit Risk
					6.4 Asset Liquidity Risk
				Bond Indexes and the Challenges of Matching a Fixed-­Income Portfolio to an Index
					7.1 Size and Breadth of the Fixed-­Income Universe
					7.2 Array of Characteristics
					7.3 Unique Issuance and Trading Patterns
					7.4 Primary Risk Factors
				Alternative Methods for Establishing Passive Bond Market Exposure
					8.1 Full Replication
					8.2 Enhanced Indexing
					8.3 Alternatives to Investing Directly in Fixed-­Income Securities
				Benchmark Selection
				Summary
				Practice Problems
				Solutions
2023 CFA© Program Curriculum Level III Volumes 3 Fixed Income and Equity Portfolio Management (CFA Institute) (Z-Library)
	How to Use the CFA Program Curriculum
		Background on the CBOK
			Organization of the Curriculum
				Features of the Curriculum
				Designing Your Personal Study Program
				CFA Institute Learning Ecosystem (LES)
				Prep Providers
				Feedback
	Portfolio Management
		6
		Fixed-­Income Portfolio Management (2)
			13
			Yield Curve Strategies
				Introduction
				Key Yield Curve and Fixed-­Income Concepts for Active Managers
					2.1 Yield Curve Dynamics
					2.2 Duration and Convexity
				Yield Curve Strategies
					3.1 Static Yield Curve
					3.2 Dynamic Yield Curve
					3.3 Key Rate Duration for a Portfolio
				Active Fixed-­Income Management across Currencies
				A Framework for Evaluating Yield Curve Strategies
				Summary
				Practice Problems
				Solutions
			14
			Fixed-­Income Active Management: Credit Strategies
				Introduction
				Key Credit and Spread Concepts for Active Management
					2.1 Credit Risk Considerations
					2.2 Credit Spread Measures
				Credit Strategies
					3.1 Bottom-­Up Credit Strategies
					3.2 Top-­Down Credit Strategies
					3.3 Factor-­Based Credit Strategies
				Liquidity and Tail Risk
					4.1 Liquidity Risk
					4.2 Tail Risk
				Synthetic Credit Strategies
				Credit Spread Curve Strategies
					6.1 Static Credit Spread Curve Strategies
					6.2 Dynamic Credit Spread Curve Strategies
				Global Credit Strategies
				Structured Credit
				Fixed-­Income Analytics
				Summary
				Practice Problems
				Solutions
		7
		Equity Portfolio Management (1)
			15
			Overview of Equity Portfolio Management
				Introduction and the Role of Equities in a Portfolio
					1.1 The Roles of Equities in a Portfolio
				Equity Investment Universe
					2.1 Segmentation by Size and Style
					2.2 Segmentation by Geography
					2.3 Segmentation by Economic Activity
					2.4 Segmentation of Equity Indexes and Benchmarks
				Income Associated with Owning and Managing an Equity Portfolio
					3.1 Dividend Income
					3.2 Securities Lending Income
					3.3 Ancillary Investment Strategies
				Costs Associated with Owning and Managing an Equity Portfolio
					4.1 Performance Fees
					4.2 Administration Fees
					4.3 Marketing and Distribution Costs
					4.4 Trading Costs
					4.5 Investment Approaches and Effects on Costs
				Shareholder Engagement
					5.1 Benefits of Shareholder Engagement
					5.2 Disadvantages of Shareholder Engagement
					5.3 The Role of an Equity Manager in Shareholder Engagement
				Equity Investment Across the Passive-­Active Spectrum
					6.1 Confidence to Outperform
					6.2 Client Preference
					6.3 Suitable Benchmark
					6.4 Client-­Specific Mandates
					6.5 Risks/Costs of Active Management
					6.6 Taxes
				Summary
				Practice Problems
				Solutions
			16
			Passive Equity Investing
				Choosing a Benchmark: Indexes as a Basis for Investment
					1.1 Choosing a Benchmark
				Choosing a Benchmark: Index Construction Methodologies
				Choosing a Benchmark: Factor-­Based Strategies
				Approaches to Passive Equity Investing: Pooled Investments
					4.1 Pooled Investments
				Approaches to Passive Equity Investing: Derivatives-­Based Approaches & Index-­Based Portfolios
					5.1 Separately Managed Equity Index-­Based Portfolios
				Passive Portfolio Construction
					6.1 Full Replication
					6.2 Stratified Sampling
					6.3 Optimization
					6.4 Blended Approach
				Tracking Error Management
					7.1 Tracking Error and Excess Return
					7.2 Potential Causes of Tracking Error and Excess Return
					7.3 Controlling Tracking Error
				Sources of Return and Risk in Passive Equity Portfolios
					8.1 Attribution Analysis
					8.2 Securities Lending
					8.3 Investor Activism and Engagement by Passive Managers
				Summary
				Practice Problems
				Solutions
		8
		Equity Portfolio Management (2)
			17
			Active Equity Investing: Strategies
				Introduction
				Approaches to Active Management
					2.1 Differences in the Nature of the Information Used
					2.2 Differences in the Focus of the Analysis
					2.3 Difference in Orientation to the Data: Forecasting Fundamentals vs. Pattern Recognition
					2.4 Differences in Portfolio Construction: Judgment vs. Optimization
				Bottom-­Up Strategies
					3.1 Bottom-­Up Strategies
				Top-­Down Strategies
					4.1 Country and Geographic Allocation to Equities
					4.2 Sector and Industry Rotation
					4.3 Volatility-­Based Strategies
					4.4 Thematic Investment Strategies
				Factor-­Based Strategies: Overview
				Factor-­Based Strategies: Style Factors
					6.1 Value
					6.2 Price Momentum
					6.3 Growth
					6.4 Quality
				Factor-­Based Strategies: Unconventional Factors
				Activist Strategies
					8.1 The Popularity of Shareholder Activism
					8.2 Tactics Used by Activist Investors
					8.3 Typical Activist Targets
				Other Active Strategies
					9.1 Strategies Based on Statistical Arbitrage and Market Microstructure
					9.2 Event-­Driven Strategies
				Creating a Fundamental Active Investment Strategy
					10.1 The Fundamental Active Investment Process
					10.2 Pitfalls in Fundamental Investing
				Creating a Quantitative Active Investment Strategy
					11.1 Creating a Quantitative Investment Process
					11.2 Pitfalls in Quantitative Investment Processes
				Equity Investment Style Classification
					12.1 Different Approaches to Style Classification
					12.2 Strengths and Limitations of Style Analysis
				Summary
				Practice Problems
				Solutions
			18
			Active Equity Investing: Portfolio Construction
				Introduction
				Building Blocks of Active Equity Portfolio Construction
					2.1 Fundamentals of Portfolio Construction
					2.2 Building Blocks Used in Portfolio Construction
				The Implementation Process: Portfolio Construction Approaches
					3.1 The Implementation Process: The Choice of Portfolio Management Approaches
				The Implementation Process: Measures of Benchmark-­Relative Risk
				The Implementation Process: Objectives and Constraints
				Absolute vs. Relative Measures of Risk
					6.1 Absolute vs. Relative Measures of Risk
				Determining the Appropriate Level of Risk
					7.1 Implementation constraints
					7.2 Limited diversification opportunities
					7.3 Leverage and its implications for risk
				Allocating the Risk Budget
				Additional Risk Measures Used in Portfolio Construction and Monitoring
					9.1 Heuristic Constraints
					9.2 Formal Constraints
					9.3 The Risks of Being Wrong
				Implicit Cost-­Related Considerations in Portfolio Construction
					10.1 Implicit Costs—Market Impact and the Relevance of Position Size, Assets under Management, and Turnover
					10.2 Estimating the Cost of Slippage
				The Well-­Constructed Portfolio
				Long/Short, Long Extension, and Market-­Neutral Portfolio Construction
					12.1 The Merits of Long-­Only Investing
					12.2 Long/Short Portfolio Construction
					12.3 Long Extension Portfolio Construction
					12.4 Market-­Neutral Portfolio Construction
					12.5 Benefits and Drawbacks of Long/Short Strategies
				Summary
				Practice Problems
				Solutions
2023 CFA© Program Curriculum Level III Volumes 4 Alternative Investment, Portfolio Management, and Private Wealth Management (CFA Institute) (Z-Library)
	How to Use the CFA Program Curriculum
		Background on the CBOK
			Organization of the Curriculum
				Features of the Curriculum
				Designing Your Personal Study Program
				CFA Institute Learning Ecosystem (LES)
				Prep Providers
				Feedback
	Portfolio Management
		9
		Alternative Investments for Portfolio Management
			19
			Hedge Fund Strategies
				Introduction and Classification of Hedge Fund Strategies
					1.1 Classification of Hedge Funds and Strategies
				Equity Strategies: Long/Short Equity
					2.1 Long/Short Equity
				Equity Strategies: Dedicated Short Selling and Short-­Biased
					3.1 Investment Characteristics
					3.2 Strategy Implementation
				Equity Strategies: Equity Market Neutral
					4.1 Investment Characteristics
					4.2 Strategy Implementation
				Event-­Driven Strategies: Merger Arbitrage
					5.1 Merger Arbitrage
				Event-­Driven Strategies: Distressed Securities
					6.1 Investment Characteristics
					6.2 Strategy Implementation
				Relative Value Strategies: Fixed Income Arbitrage
					7.1 Fixed-­Income Arbitrage
				Relative Value Strategies: Convertible Bond Arbitrage
					8.1 Investment Characteristics
					8.2 Strategy Implementation
				Opportunistic Strategies: Global Macro Strategies
					9.1 Global Macro Strategies
				Opportunistic Strategies: Managed Futures
					10.1 Investment Characteristics
					10.2 Strategy Implementation
				Specialist Strategies
					11.1 Volatility Trading
					11.2 Reinsurance/Life Settlements
				Multi-­Manager Strategies
					12.1 Fund-­of-­Funds
					12.2 Multi-­Strategy Hedge Funds
				Analysis of Hedge Fund Strategies using a Conditional Factor Risk Model
					13.1 Conditional Factor Risk Model
				Evaluating Equity Hedge Fund Strategies: Application
				Evaluating Multi-­Manager Hedge Fund Strategies: Application
				Portfolio Contribution of Hedge Fund Strategies
					16.1 Performance Contribution to a 60/40 Portfolio
					16.2 Risk Metrics
				Summary
				Practice Problems
				Solutions
			20
			Asset Allocation to Alternative Investments
				Introduction and The Role of Alternative Investments in a Multi-­Asset Portfolio
					1.1 The Role of Alternative Investments in a Multi-­Asset Portfolio
				Diversifying Equity Risk
					2.1 Volatility Reduction over the Short Time Horizon
					2.2 Risk of Not Meeting the Investment Goals over the Long Time Horizon
				Traditional Approaches to Asset Classification
					3.1 Traditional Approaches to Asset Classification
				Risk-­Based Approaches to Asset Classification and Comparing Risk-­Based and Traditional Approaches
					4.1 Illustration: Asset Allocation and Risk-­Based Approaches
					4.2 Comparing Risk-­Based and Traditional Approaches
				Risk Considerations, Return Expectations and Investment Vehicle
					5.1 Risk Considerations
					5.2 Return Expectations
					5.3 Investment Vehicle
				Liquidity
					6.1 Liquidity Risks Associated with the Investment Vehicle
					6.2 Liquidity Risks Associated with the Underlying Investments
				Fees and Expenses, Tax Considerations, and Other Considerations
					7.1 Tax Considerations
					7.2 Other Considerations
				Suitability Considerations
					8.1 Investment Horizon
					8.2 Expertise
					8.3 Governance
					8.4 Transparency
				Asset Allocation Approaches and Statistical Properties and Challenges of Asset Returns
					9.1 Statistical Properties and Challenges of Asset Returns
				Monte Carlo Simulation
					10.1 Simulating Skewed and Fat-­Tailed Financial Variables
					10.2 Simulation for Long-­Term Horizon Risk Assessment
				Portfolio Optimization
					11.1 Mean–Variance Optimization without and with Constraints
					11.2 Mean–CVaR Optimization
				Risk Factor-­Based Optimization
				Liquidity Planning and Achieving and Maintaining the Strategic Asset Allocation
					13.1 Achieving and Maintaining the Strategic Asset Allocation
				Managing the Capital Calls and Preparing for the Unexpected
					14.1 Preparing for the Unexpected
				Monitoring the Investment Program
					15.1 Overall Investment Program Monitoring
					15.2 Performance Evaluation
					15.3 Monitoring the Firm and the Investment Process
				Summary
				Practice Problems
				Solutions
		10
		Private Wealth Management (1)
			21
			Overview of Private Wealth Management
				Introduction and Private Clients Versus Institutional Clients
					1.1 Private Clients versus Institutional Clients
				Understanding Private Clients: Information Needed in Advising Private Clients
					2.1 Information Needed in Advising Private Clients
				Client Goals
					3.1 Planned Goals
					3.2 Unplanned Goals
					3.3 The Wealth Manager’s Role
				Private Client Risk Tolerance
					4.1 Risk Tolerance Questionnaire
					4.2 Risk Tolerance Conversation
					4.3 Risk Tolerance with Multiple Goals
				Technical and Soft Skills for Wealth Managers
					5.1 Technical Skills
					5.2 Soft Skills
				Investment Planning, and Capital Sufficiency Analysis
					6.1 Capital Sufficiency Analysis
				Retirement Planning
					7.1 Retirement Stage of Life
				Investment Policy Statement
					8.1 Parts of the Investment Policy Statement
				Sample Investment Policy Statement
				Portfolio Construction and Allocation and Investments for Private Wealth Clients
					10.1 Portfolio Allocation and Investments for Private Wealth Clients
				Portfolio Reporting and Review
					11.1 Portfolio Reporting
					11.2 Portfolio Review
				Evaluating The Success of an Investment Program
					12.1 Goal Achievement
					12.2 Process Consistency
					12.3 Portfolio Performance
					12.4 Definitions of Success
				Ethical and Compliance Considerations in Private Wealth Management
					13.1 Ethical Considerations
					13.2 Compliance Considerations
				Private Client Segments
					14.1 Mass Affluent Segment
					14.2 High-­Net-­Worth Segment
					14.3 Ultra-­High-­Net-­Worth Segment
					14.4 Robo-­Advisors
				Summary
				Practice Problems
				Solutions
			22
			Topics in Private Wealth Management
				Introduction
				General Principles of Taxation: Components of Return and Tax Status of the Account
					2.1 Taxation of the Components of Return
					2.2 The Tax Status of the Account
				The Jurisdiction that Applies to the Investor
				Measuring Tax Efficiency with After-­Tax Returns
					4.1 Tax Efficiency of Various Asset Classes and Investment Strategies
					4.2 Calculating After-­Tax Returns
				Taxable, Tax-­Exempt, and Tax-­Deferred Accounts: Capital Accumulation and Asset Location
					5.1 Capital Accumulation in Taxable, Tax-­Deferred, and Tax-­Exempt Accounts
					5.2 Asset Location
				Taxable, Tax-­Exempt, and Tax-­Deferred Accounts: Decumulation Strategies and Charitable Giving Strategies
					6.1 Tax Considerations in Charitable Giving
				Tax Management Strategies and Basic Tax Strategies
					7.1 Basic Portfolio Tax Management Strategies
				Application of Tax Management Strategies
					8.1 Investment Vehicles
					8.2 Tax Loss Harvesting
					8.3 Quantitative Tax Management
				Managing Concentrated Portfolios and Risk and Tax Considerations in Managing Concentrated Single-­Asset Positions
					9.1 Risk and Tax Considerations in Managing Concentrated Single-­Asset Positions
				Strategies for Managing Concentrated Positions in Public Equities
					10.1 Staged Diversification and Completion Portfolios
					10.2 Tax-­Optimized Equity Strategies—Equity Monetization, Collars, and Call Writing
					10.3 Tax-­Free Exchanges
					10.4 Charitable Remainder Trust
				Strategies for Managing Concentrated Positions in Privately Owned Businesses and Strategies for Managing Concentrated Positions in Real Estate
					11.1 Personal Line of Credit Secured by Company Shares
					11.2 Leveraged Recapitalization
					11.3 Employee Stock Ownership Plan
					11.4 Strategies for Managing Concentrated Positions in Real Estate
					11.5 Mortgage Financing
					11.6 Real Estate Monetization for the Charitably Inclined—An Asset Location Strategy
				Directing and Transferring Wealth and Objectives of Gift and Estate Planning
					12.1 Objectives of Gift and Estate Planning
				Gift and Estate Planning Strategies, Introduction to Estate Planning: Wills, Probate and Legal Systems, and Lifetime Gifts and Testamentary Bequests
					13.1 Introduction to Estate Planning: Wills, Probate, and Legal Systems
					13.2 Lifetime Gifts and Testamentary Bequests
					13.3 Efficiency of Lifetime Gifts versus Testamentary Bequests
				Estate Planning Tools: Trusts, Foundations, Life Insurance, Companies
				Managing Wealth Across Generations, General Principles of Family Governance, Family Conflict Resolution, and Family Dynamics in the Context of Business Exit
					15.1 General Principles of Family Governance
					15.2 Family Conflict Resolution
					15.3 Family Dynamics in the Context of Business Exit
				Planning for the Unexpected
					16.1 Divorce
					16.2 Incapacity
				Summary
				Practice Problems
				Solutions
		11
		Private Wealth Management (2)
			23
			Risk Management for Individuals
				Introduction
				Human Capital, Financial Capital, and Economic Net Worth
					2.1 Human Capital
					2.2 Financial Capital
					2.3 Economic Net Worth
				A Framework for Individual Risk Management
					3.1 The Risk Management Strategy for Individuals
					3.2 Financial Stages of Life
				The Individual Balance Sheet
					4.1 Traditional Balance Sheet
					4.2 Economic (Holistic) Balance Sheet
					4.3 Changes in Economic Net Worth
				Individual Risk Exposures
					5.1 Earnings Risk
					5.2 Premature Death Risk
					5.3 Longevity Risk
					5.4 Property Risk
					5.5 Liability Risk
					5.6 Health Risk
				Life Insurance: Uses, Types and Elements
					6.1 Life Insurance
				Life Insurance - Pricing, Policy Cost Comparison and Determining Amount Needed
					7.1 Mortality Expectations
					7.2 Calculation of the Net Premium and Gross Premium
					7.3 Cash Values and Policy Reserves
					7.4 Consumer Comparisons of Life Insurance Costs
					7.5 How Much Life Insurance Does One Need?
				Other Types of Insurance
					8.1 Property Insurance
					8.2 Health/Medical Insurance
					8.3 Liability Insurance
					8.4 Other Types of Insurance
				Annuities: Types, Structure and Classification
					9.1 Parties to an Annuity Contract
					9.2 Classification of Annuities
				Annuities: Advantages and Disadvantages of Fixed and Variable Annuities
					10.1 Volatility of Benefit Amount
					10.2 Flexibility
					10.3 Future Market Expectations
					10.4 Fees
					10.5 Inflation Concerns
					10.6 Payout Methods
					10.7 Annuity Benefit Taxation
					10.8 Appropriateness of Annuities
				Risk Management Implementation: Determining the Optimal Strategy and Case Analysis
					11.1 Determining the Optimal Risk Management Strategy
					11.2 Analyzing an Insurance Program
				The Effect of Human Capital on Asset Allocation and Risk Reduction
					12.1 Asset Allocation and Risk Reduction
				Summary
				Practice Problems
				Solutions
2023 CFA© Program Curriculum Level III Volumes 5 Institutional Investors, Other Topics in Portfolio Management, and Cases (CFA Institute) (Z-Library)
	How to Use the CFA Program Curriculum
		Background on the CBOK
			Organization of the Curriculum
				Features of the Curriculum
				Designing Your Personal Study Program
				CFA Institute Learning Ecosystem (LES)
				Prep Providers
				Feedback
	Portfolio Management
		12
		Portfolio Management for Institutional Investors
			24
			Portfolio Management for Institutional Investors
				Institutional Investors: Types and Common Characteristics
					1.1 Institutional Investors: Common Characteristics
				Overview of Investment Policy
				Pension Funds: Types and Stakeholders
					3.1 Stakeholders
				Pension Funds: Liabilities, Investment Horizon, and Liquidity Needs
					4.1 Liabilities and Investment Horizon
					4.2 Liquidity Needs
				Pension Funds: External Constraints
					5.1 Legal and Regulatory Constraints
					5.2 Tax and Accounting Constraints
				Pension Funds: Risk Considerations
				Pension Funds: Investment Objectives and Asset Allocation
					7.1 Investment Objectives
					7.2 Asset Allocation by Pension Plans
				Sovereign Wealth Funds: Types and Stakeholders
					8.1 Stakeholders
				Sovereign Wealth Funds: Liabilities, Investment Horizon, Liquidity Needs, and External Constraints
					9.1 Liabilities and Investment Horizons
					9.2 Liquidity Needs
					9.3 External Constraints Affecting Investment
				Sovereign Wealth Funds: Investment Objectives and Asset Allocation
					10.1 Investment Objectives
					10.2 Asset Allocation by Sovereign Wealth Funds
				University Endowments and Private Foundations: Introduction and External Constraints
					11.1 External Constraints Affecting Investment
				University Endowments: Stakeholders, Liabilities, Investment Horizon, and Liquidity Needs
					12.1 University Endowments—Liabilities and Investment Horizon
					12.2 University Endowments—Liquidity Needs
				Private Foundations: Types, Stakeholders, Liabilities, Investment Horizon, and Liquidity Needs
					13.1 Private Foundations—Liabilities and Investment Horizon
					13.2 Private Foundations—Liquidity Needs
				University Endowments: Investment Objectives and Asset Allocation
					14.1 University Endowments
					14.2 Asset Allocation
				Private Foundations: Investment Objectives and Asset Allocation
					15.1 Private Foundations
				Banks and Insurers: Introduction and External Constraints
					16.1 External Constraints Affecting Investment
				Banks: Stakeholders, Liabilities, Investment Horizon, and Liquidity Needs
					17.1 Banks—Liabilities and Investment Horizon
					17.2 Banks—Liquidity Needs
				Insurers: Stakeholders, Liabilities, Investment Horizon, and Liquidity Needs
					18.1 Insurers—Liabilities and Investment Horizon
					18.2 Insurers—Liquidity Needs
				Banks and Insurers: Investment Objectives
					19.1 Banks
					19.2 Insurers
				Banks and Insurers: Balance Sheet Management and Investment Considerations
				Banks and Insurers: Investment Strategies and Effects on Asset and Liability Volatility
				Banks and Insurers: Implementation of Portfolio Decisions
				Summary
				Practice Problems
				Solutions
		13
		Trading, Performance Evaluation, and Manager Selection
			25
			Trade Strategy and Execution
				Introduction
				Motivations to Trade
					2.1 Profit Seeking
					2.2 Risk Management/Hedging Needs
					2.3 Cash Flow Needs
					2.4 Corporate Actions/Index Reconstitutions/Margin Calls
				Trading Strategies and Strategy Selection
					3.1 Trade Strategy Inputs
				Reference Prices
					4.1 Pre-­Trade Benchmarks
					4.2 Intraday Benchmarks
					4.3 Post-­Trade Benchmarks
					4.4 Price Target Benchmarks
				Trading Strategies
					5.1 Short-­Term Alpha Trade
					5.2 Long-­Term Alpha Trade
					5.3 Risk Rebalance Trade
					5.4 Client Redemption Trade
					5.5 New Mandate Trade
				Trade Execution
					6.1 Trade Implementation Choices
					6.2 Algorithmic Trading
				Comparison of Markets
					7.1 Equities
					7.2 Fixed Income
					7.3 Exchange-­Traded Derivatives
					7.4 Over-­the-­Counter Derivatives
					7.5 Spot Foreign Exchange (Currency)
				Trade Cost Measurement
					8.1 Implementation Shortfall
					8.2 Expanded Implementation Shortfall
				Evaluating Trade Execution
					9.1 Arrival Price
					9.2 VWAP
					9.3 TWAP
					9.4 Market on Close
					9.5 Market-­Adjusted Cost
					9.6 Added Value
				Trade Governance
					10.1 Meaning of Best Order Execution within the Relevant Regulatory Framework
					10.2 Factors Used to Determine the Optimal Order Execution Approach
					10.3 List of Eligible Brokers and Execution Venues
					10.4 Process Used to Monitor Execution Arrangements
				Summary
				Practice Problems
				Solutions
			26
			Portfolio Performance Evaluation
				Introduction
				Introduction to Performance Evaluation and Attribution
					2.1 Performance Attribution
				Equity Return Attribution
					3.1 A Simple Return Attribution Example
					3.2 Equity Return Attribution—The Brinson–Hood–Beebower Model
					3.3 Brinson–Fachler Model
				Fixed- Income Return Attribution
					4.1 Fixed-­Income Return Attribution
				Risk Attribution
				Return Attribution Analysis at Multiple Levels
					6.1 Macro Attribution—An Example
					6.2 Micro Attribution—An Example
				Asset-­Based and Liability-­Based Benchmarks
					7.1 Asset-­Based Benchmarks
				Benchmark Properties, Evaluating Benchmark Quality, and Choosing the Correct Benchmark
					8.1 Evaluating Benchmark Quality: Analysis Based on a Decomposition of Portfolio Holdings and Returns
					8.2 Importance of Choosing the Correct Benchmark
				Benchmarking Alternative Investments
					9.1 Benchmarking Hedge Fund Investments
					9.2 Benchmarking Real Estate Investments
					9.3 Benchmarking Private Equity
					9.4 Benchmarking Commodity Investments
					9.5 Benchmarking Managed Derivatives
					9.6 Benchmarking Distressed Securities
				Performance Appraisal: Risk-­Based Measures
					10.1 Distinguishing Investment Skill from Luck
					10.2 Appraisal Measures
				Performance Appraisal: Capture Ratios and Drawdowns
					11.1 Capture Ratios
					11.2 Drawdown
				Evaluation of Investment Manager Skill
					12.1 Performance Attribution Analysis
					12.2 Appraisal Measures
					12.3 Sample Evaluation of Skill
				Summary
				Practice Problems
				Solutions
			27
			Investment Manager Selection
				Introduction
				A Framework for Investment Manager Search and Selection
					2.1 Defining the Manager Universe
				Type I and Type II Errors in Manager Selection
					3.1 Qualitative considerations in Type I and Type II errors
					3.2 Performance implications of Type I and Type II errors
				Quantitative Elements of Manager Search and Selection
					4.1 Style Analysis
				Capture Ratios and Drawdowns in Manager Evaluation
				The Manager's Investment Philosophy
					6.1 Investment Philosophy
					6.2 Investment Personnel
				The Manager's Investment Decision-­making Process
					7.1 Signal Creation (Idea Generation)
					7.2 Signal Capture (Idea Implementation)
					7.3 Portfolio Construction
					7.4 Monitoring the Portfolio
				Operational Due Diligence
					8.1 Firm
					8.2 Investment Vehicle
					8.3 Evaluation of the Investment’s Terms
				Management Fees1
					9.1 Assets under Management Fees
					9.2 Performance-­Based Fees
				Summary
				Practice Problems
				Solutions
		14
		Cases in Portfolio Management and Risk Management
			28
			Case Study in Portfolio Management: Institutional
				Introduction
				Background: Liquidity Management
					2.1 Liquidity Profiling and Time-­to-­Cash
					2.2 Rebalancing, Commitments
					2.3 Stress Testing
					2.4 Derivatives
					2.5 Earning an Illiquidity Premium
				QUINCO Case: Background
					3.1 Quadrivium University Investment Company (QUINCO)
					3.2 Investment Strategy: Background and Evolution
				QUINCO Case: Strategic Asset Allocation
				QUINCO Case: Liquidity Management
				QUINCO Case: Asset Manager Selection
				QUINCO Case: Tactical Asset Allocation
				QUINCO Case: Asset Allocation Rebalancing
				QUINCO Case: ESG Integration
				Summary
				Practice Problems
				Solutions
			29
			Case Study in Risk Management: Private Wealth
				Introduction and Case Background
					1.1 Background of Eurolandia
					1.2 The Schmitt Family in Their Early Career Stage
				Identification and Analysis of Risk Exposures: Early Career Stage
					2.1 Specify the Schmitts’ financial objectives
					2.2 Identification of risk exposures
					2.3 Analysis of identified risk
				Risk Management Recommendations: Early Career Stage
					3.1 Recommendations for managing risks
					3.2 Monitoring outcomes and risk exposures
				Risk Management Considerations associated with Home Purchase
					4.1 Review of risk Management Arrangements Following the House Purchase
				Identification and Analysis of Risk Exposures: Career Development Stage
					5.1 Case Facts: The Schmitts Are 45
					5.2 Financial Objectives in the Career Development Stage
					5.3 Identification and Evaluation of Risks in the Career Development Stage
				Risk Management Recommendations: Career Development Stage
					6.1 Disability insurance
					6.2 Life insurance
					6.3 Investment risk recommendations
					6.4 Retirement planning recommendation
					6.5 Additional suggestions
				Identification and Analysis of Risk Exposures: Peak Accumulation Stage
					7.1 Review of Objectives, Risks, and Methods of Addressing Them
				Assessment of and Recommendations concerning Risk to Retirement Lifestyle and Bequest Goals: Peak Accumulation Stage
					8.1 Analysis of Investment Portfolio
					8.2 Analysis of Asset Allocation
					8.3 Recommendations for Risk Management at Peak Accumulation Stage
				Identification and Analysis of Retirement Objectives, Assets and Drawdown Plan: Retirement Stage
					9.1 Key Issues and Objectives
					9.2 Analysis of Retirement Assets and Drawdown Plan
				Income and Investment Portfolio Recommendations: Retirement Stage
					10.1 Investment Portfolio Analysis and Recommendations
					10.2 The Advisor’s Recommendations for Investment Portfolio in Retirement
				Summary
				Practice Problems
				Solutions
			30
			Integrated Cases in Risk Management: Institutional
				Introduction
				Financial Risks Faced by Institutional Investors
					2.1 Long-­Term Perspective
					2.2 Dimensions of Financial Risk Management
					2.3 Risk Considerations for Long-­Term Investors
					2.4 Risks Associated with Illiquid Asset Classes
					2.5 Managing Liquidity Risk
					2.6 Enterprise Risk Management for Institutional Investors
				Environmental and Social Risks Faced by Institutional Investors
					3.1 Universal Ownership, Externalities, and Responsible Investing
					3.2 Material Environmental Issues for an Institutional Investor
					3.3 Material Social Issues for an Institutional Investor
				Case Study
					1 Case Study: Introduction
					2 Case Study: Background
					3 R-­SWF’S Investments: 1.0
					Investment Committee Meeting 1.0
					4 R-­SWF’S Investments: 2.0
					Investment Committee Meeting 2.0
					5 R-­SWF’S Investments: 3.0
2023 CFA© Program Curriculum Level III Volumes 6 Ethics and Professional Standards (CFA Institute) (Z-Library)
	How to Use the CFA Program Curriculum
		Background on the CBOK
			Organization of the Curriculum
				Features of the Curriculum
				Designing Your Personal Study Program
				CFA Institute Learning Ecosystem (LES)
				Prep Providers
				Feedback
	Ethical and Professional Standards
		15
		Ethical and Professional Standards (1)
			31
			Code of Ethics and Standards of Professional Conduct
				Preface
					Evolution of the CFA Institute Code of Ethics and Standards of Professional Conduct
					Standards of Practice Handbook
					Summary of Changes in the Eleventh Edition
					CFA Institute Professional Conduct Program
					Adoption of the Code and Standards
					Acknowledgments
				Ethics and the Investment Industry
					Why Ethics Matters
				CFA Institute Code of Ethics and Standards of Professional Conduct
					Preamble
					The Code of Ethics
					Standards of Professional Conduct
			32
			Guidance for Standards I–VII
				Standard I(A): Professionalism - Knowledge of the Law
					Standard I(A) Knowledge of the Law
					Guidance
				Standard I(A): Recommended Procedures
					Members and Candidates
					Distribution Area Laws
					Legal Counsel
					Dissociation
					Firms
				Standard I(A): Application of the Standard
					Example 1 (Notification of Known Violations):
					Example 2 (Dissociating from a Violation):
					Example 3 (Dissociating from a Violation):
					Example 4 (Following the Highest Requirements):
					Example 5 (Following the Highest Requirements):
					Example 6 (Laws and Regulations Based on Religious Tenets):
					Example 7 (Reporting Potential Unethical Actions):
					Example 8 (Failure to Maintain Knowledge of the Law):
				Standard I(B): Professionalism - Independence and Objectivity
					Guidance
				Standard I(B): Recommended Procedures
				Standard I(B): Application of the Standard
					Example 1 (Travel Expenses):
					Example 2 (Research Independence):
					Example 3 (Research Independence and Intrafirm Pressure):
					Example 4 (Research Independence and Issuer Relationship Pressure):
					Example 5 (Research Independence and Sales Pressure):
					Example 6 (Research Independence and Prior Coverage):
					Example 7 (Gifts and Entertainment from Related Party):
					Example 8 (Gifts and Entertainment from Client):
					Example 9 (Travel Expenses from External Manager):
					Example 10 (Research Independence and Compensation Arrangements):
					Example 11 (Recommendation Objectivity and Service Fees):
					Example 12 (Recommendation Objectivity):
					Example 13 (Influencing Manager Selection Decisions):
					Example 14 (Influencing Manager Selection Decisions):
					Example 15 (Fund Manager Relationships):
					Example 16 (Intrafirm Pressure):
				Standard I(C): Professionalism – Misrepresentation
					Guidance
				Standard I(C): Recommended Procedures
					Factual Presentations
					Qualification Summary
					Verify Outside Information
					Maintain Webpages
					Plagiarism Policy
				Standard I(C): Application of the Standard
					Example 1 (Disclosure of Issuer-­Paid Research):
					Example 2 (Correction of Unintentional Errors):
					Example 3 (Noncorrection of Known Errors):
					Example 4 (Plagiarism):
					Example 5 (Misrepresentation of Information):
					Example 6 (Potential Information Misrepresentation):
					Example 7 (Plagiarism):
					Example 8 (Plagiarism):
					Example 9 (Plagiarism):
					Example 10 (Plagiarism):
					Example 11 (Misrepresentation of Information):
					Example 12 (Misrepresentation of Information):
					Example 13 (Avoiding a Misrepresentation):
					Example 14 (Misrepresenting Composite Construction):
					Example 15 (Presenting Out-­of-­Date Information):
					Example 16 (Overemphasis of Firm Results):
				Standard I(D): Professionalism – Misconduct
					Guidance
				Standard I(D): Recommended Procedures
				Standard I(D): Application of the Standard
					Example 1 (Professionalism and Competence):
					Example 2 (Fraud and Deceit):
					Example 3 (Fraud and Deceit):
					Example 4 (Personal Actions and Integrity):
					Example 5 (Professional Misconduct):
				Standard II(A): Integrity of Capital Markets - Material Nonpublic Information
					Standard II(A) Material Nonpublic Information
					Guidance
				Standard II(A): Recommended Procedures
					Achieve Public Dissemination
					Adopt Compliance Procedures
					Adopt Disclosure Procedures
					Issue Press Releases
					Firewall Elements
					Appropriate Interdepartmental Communications
					Physical Separation of Departments
					Prevention of Personnel Overlap
					A Reporting System
					Personal Trading Limitations
					Record Maintenance
					Proprietary Trading Procedures
					Communication to All Employees
				Standard II(A): Application of the Standard
					Example 1 (Acting on Nonpublic Information):
					Example 2 (Controlling Nonpublic Information):
					Example 3 (Selective Disclosure of Material Information):
					Example 4 (Determining Materiality):
					Example 5 (Applying the Mosaic Theory):
					Example 6 (Applying the Mosaic Theory):
					Example 7 (Analyst Recommendations as Material Nonpublic Information):
					Example 8 (Acting on Nonpublic Information):
					Example 9 (Mosaic Theory):
					Example 10 (Materiality Determination):
					Example 11 (Using an Expert Network):
					Example 12 (Using an Expert Network):
				Standard II(B): Integrity of Capital Markets - Market Manipulation
					Guidance
				Standard II(B): Application of the Standard
					Example 1 (Independent Analysis and Company Promotion):
					Example 2 (Personal Trading Practices and Price):
					Example 3 (Creating Artificial Price Volatility):
					Example 4 (Personal Trading and Volume):
					Example 5 (“Pump-­Priming” Strategy):
					Example 6 (Creating Artificial Price Volatility):
					Example 7 (Pump and Dump Strategy):
					Example 8 (Manipulating Model Inputs):
					Example 9 (Information Manipulation):
				Standard III(A): Duties to Clients - Loyalty, Prudence, and Care
					Standard III(A) Loyalty, Prudence, and Care
					Guidance
				Standard III(A): Recommended Procedures
					Regular Account Information
					Client Approval
					Firm Policies
				Standard III(A): Application of the Standard
					Example 1 (Identifying the Client—Plan Participants):
					Example 2 (Client Commission Practices):
					Example 3 (Brokerage Arrangements):
					Example 4 (Brokerage Arrangements):
					Example 5 (Client Commission Practices):
					Example 6 (Excessive Trading):
					Example 7 (Managing Family Accounts):
					Example 8 (Identifying the Client):
					Example 9 (Identifying the Client):
					Example 10 (Client Loyalty):
					Example 11 (Execution-­Only Responsibilities):
				Standard III(B): Duties to Clients - Fair Dealing
					Guidance
				Standard III(B): Recommended Procedures
					Develop Firm Policies
					Disclose Trade Allocation Procedures
					Establish Systematic Account Review
					Disclose Levels of Service
				Standard III(B): Application of the Standard
					Example 1 (Selective Disclosure):
					Example 2 (Fair Dealing between Funds):
					Example 3 (Fair Dealing and IPO Distribution):
					Example 4 (Fair Dealing and Transaction Allocation):
					Example 5 (Selective Disclosure):
					Example 6 (Additional Services for Select Clients):
					Example 7 (Minimum Lot Allocations):
					Example 8 (Excessive Trading):
					Example 9 (Limited Social Media Disclosures):
					Example 10 (Fair Dealing between Clients):
				Standard III(C): Duties to Clients – Suitability
					Guidance
				Standard III(C): Recommended Procedures
					Investment Policy Statement
					Regular Updates
					Suitability Test Policies
				Standard III(C): Application of the Standard
					Example 1 (Investment Suitability—Risk Profile):
					Example 2 (Investment Suitability—Entire Portfolio):
					Example 3 (IPS Updating):
					Example 4 (Following an Investment Mandate):
					Example 5 (IPS Requirements and Limitations):
					Example 6 (Submanager and IPS Reviews):
					Example 7 (Investment Suitability—Risk Profile):
					Example 8 (Investment Suitability):
				Standard III(D): Duties to Clients - Performance Presentation
					Guidance
				Standard III(D): Recommended Procedures
					Apply the GIPS Standards
					Compliance without Applying GIPS Standards
				Standard III(D): Application of the Standard
					Example 1 (Performance Calculation and Length of Time):
					Example 2 (Performance Calculation and Asset Weighting):
					Example 3 (Performance Presentation and Prior Fund/Employer):
					Example 4 (Performance Presentation and Simulated Results):
					Example 5 (Performance Calculation and Selected Accounts Only):
					Example 6 (Performance Attribution Changes):
					Example 7 (Performance Calculation Methodology Disclosure):
					Example 8 (Performance Calculation Methodology Disclosure):
				Standard III(E): Duties to Clients - Preservation of Confidentiality
					Guidance
				Standard III(E): Recommended Procedures
					Communicating with Clients
				Standard III(E): Application of the Standard
					Example 1 (Possessing Confidential Information):
					Example 2 (Disclosing Confidential Information):
					Example 3 (Disclosing Possible Illegal Activity):
					Example 4 (Disclosing Possible Illegal Activity):
					Example 5 (Accidental Disclosure of Confidential Information):
				Standard IV(A): Duties to Employers – Loyalty
					Standard IV(A) Loyalty
					Guidance
				Standard IV(A): Recommended Procedures
					Competition Policy
					Termination Policy
					Incident-­Reporting Procedures
					Employee Classification
				Standard IV(A): Application of the Standard
					Example 1 (Soliciting Former Clients):
					Example 2 (Former Employer’s Documents and Files):
					Example 3 (Addressing Rumors):
					Example 4 (Ownership of Completed Prior Work):
					Example 5 (Ownership of Completed Prior Work):
					Example 6 (Soliciting Former Clients):
					Example 7 (Starting a New Firm):
					Example 8 (Competing with Current Employer):
					Example 9 (Externally Compensated Assignments):
					Example 10 (Soliciting Former Clients):
					Example 11 (Whistleblowing Actions):
					Example 12 (Soliciting Former Clients):
					Example 13 (Notification of Code and Standards):
					Example 14 (Leaving an Employer):
					Example 15 (Confidential Firm Information):
				Standard IV(B): Duties to Employers - Additional Compensation Arrangements
					Guidance
				Standard IV(B): Recommended Procedures
				Standard IV(B): Application of the Standard
					Example 1 (Notification of Client Bonus Compensation):
					Example 2 (Notification of Outside Compensation):
					Example 3 (Prior Approval for Outside Compensation):
				Standard IV(C): Duties to Employers - Responsibilities of Supervisors
					Guidance
				Standard IV(C): Recommended Procedures
					Codes of Ethics or Compliance Procedures
					Adequate Compliance Procedures
					Implementation of Compliance Education and Training
					Establish an Appropriate Incentive Structure
				Standard IV(C): Application of the Standard
					Example 1 (Supervising Research Activities):
					Example 2 (Supervising Research Activities):
					Example 3 (Supervising Trading Activities):
					Example 4 (Supervising Trading Activities and Record Keeping):
					Example 5 (Accepting Responsibility):
					Example 6 (Inadequate Procedures):
					Example 7 (Inadequate Supervision):
					Example 8 (Supervising Research Activities):
					Example 9 (Supervising Research Activities):
				Standard V(A): Investment Analysis, Recommendations, and Actions - Diligence and Reasonable Basis
					Standard V(A) Diligence and Reasonable Basis
					Guidance
				Standard V(A): Recommended Procedures
				Standard V(A): Application of the Standard
					Example 1 (Sufficient Due Diligence):
					Example 2 (Sufficient Scenario Testing):
					Example 3 (Developing a Reasonable Basis):
					Example 4 (Timely Client Updates):
					Example 5 (Group Research Opinions):
					Example 6 (Reliance on Third-­Party Research):
					Example 7 (Due Diligence in Submanager Selection):
					Example 8 (Sufficient Due Diligence):
					Example 9 (Sufficient Due Diligence):
					Example 10 (Sufficient Due Diligence):
					Example 11 (Use of Quantitatively Oriented Models):
					Example 12 (Successful Due Diligence/Failed Investment):
					Example 13 (Quantitative Model Diligence):
					Example 14 (Selecting a Service Provider):
					Example 15 (Subadviser Selection):
					Example 16 (Manager Selection):
					Example 17 (Technical Model Requirements):
				Standard V(B): Investment Analysis, Recommendations, and Actions - Communication with Clients and Prospective Clients
					Guidance
				Standard V(B): Recommended Procedures
				Standard V(B): Application of the Standard
					Example 1 (Sufficient Disclosure of Investment System):
					Example 2 (Providing Opinions as Facts):
					Example 3 (Proper Description of a Security):
					Example 4 (Notification of Fund Mandate Change):
					Example 5 (Notification of Fund Mandate Change):
					Example 6 (Notification of Changes to the Investment Process):
					Example 7 (Notification of Changes to the Investment Process):
					Example 8 (Notification of Changes to the Investment Process):
					Example 9 (Sufficient Disclosure of Investment System):
					Example 10 (Notification of Changes to the Investment Process):
					Example 11 (Notification of Errors):
					Example 12 (Notification of Risks and Limitations):
					Example 13 (Notification of Risks and Limitations):
					Example 14 (Notification of Risks and Limitations):
				Standard V(C): Investment Analysis, Recommendations, and Actions - Record Retention
					Guidance
				Standard V(C): Recommended Procedures
				Standard V(C): Application of the Standard
					Example 1 (Record Retention and IPS Objectives and Recommendations):
					Example 2 (Record Retention and Research Process):
					Example 3 (Records as Firm, Not Employee, Property):
				Standard VI(A): Conflicts of Interest - Disclosure of Conflicts
					Standard VI(A) Disclosure of Conflicts
					Guidance
				Standard VI(A): Recommended Procedures
				Standard VI(A): Application of the Standard
					Example 1 (Conflict of Interest and Business Relationships):
					Example 2 (Conflict of Interest and Business Stock Ownership):
					Example 3 (Conflict of Interest and Personal Stock Ownership):
					Example 4 (Conflict of Interest and Personal Stock Ownership):
					Example 5 (Conflict of Interest and Compensation Arrangements):
					Example 6 (Conflict of Interest, Options, and Compensation Arrangements):
					Example 7 (Conflict of Interest and Compensation Arrangements):
					Example 8 (Conflict of Interest and Directorship):
					Example 9 (Conflict of Interest and Personal Trading):
					Example 10 (Conflict of Interest and Requested Favors):
					Example 11 (Conflict of Interest and Business Relationships):
					Example 12 (Disclosure of Conflicts to Employers):
				Standard VI(B): Conflicts of Interest - Priority of Transactions
					Guidance
				Standard VI(B): Recommended Procedures
				Standard VI(B): Application of the Standard
					Example 1 (Personal Trading):
					Example 2 (Trading for Family Member Account):
					Example 3 (Family Accounts as Equals):
					Example 4 (Personal Trading and Disclosure):
					Example 5 (Trading Prior to Report Dissemination):
				Standard VI(C): Conflicts of Interest - Referral Fees
					Guidance
				Standard VI(C): Recommended Procedures
				Standard VI(C): Application of the Standard
					Example 1 (Disclosure of Referral Arrangements and Outside Parties):
					Example 2 (Disclosure of Interdepartmental Referral Arrangements):
					Example 3 (Disclosure of Referral Arrangements and Informing Firm):
					Example 4 (Disclosure of Referral Arrangements and Outside Organizations):
					Example 5 (Disclosure of Referral Arrangements and Outside Parties):
				Standard VII(A): Responsibilities as a CFA Institute Member or CFA Candidate - Conduct as Participants in CFA Institute Programs
					Standard VII(A) Conduct as Participants in CFA Institute Programs
					Guidance
				Standard VII(A): Application of the Standard
					Example 1 (Sharing Exam Questions):
					Example 2 (Bringing Written Material into Exam Room):
					Example 3 (Writing after Exam Period End):
					Example 4 (Sharing Exam Content):
					Example 5 (Sharing Exam Content):
					Example 6 (Sharing Exam Content):
					Example 7 (Discussion of Exam Grading Guidelines and Results):
					Example 8 (Compromising CFA Institute Integrity as a Volunteer):
					Example 9 (Compromising CFA Institute Integrity as a Volunteer):
				Standard VII(B): Responsibilities as a CFA Institute Member or CFA Candidate - Reference to CFA Institute, the CFA Designation, and the CFA Program
					Guidance
				Standard VII(B): Recommended Procedures
				Standard VII(B): Application of the Standard
					Example 1 (Passing Exams in Consecutive Years):
					Example 2 (Right to Use CFA Designation):
					Example 3 (“Retired” CFA Institute Membership Status):
					Example 4 (Stating Facts about CFA Designation and Program):
					Example 5 (Order of Professional and Academic Designations):
					Example 6 (Use of Fictitious Name):
				Practice Problems
				Solutions
			33
			Application of the Code and Standards: Level III
				Introduction
				Sovereign Investment Corporation
					Anthony Corrales, CFA, Partner, Hedge Fund Investors
					Ani Mehrotra, CFA, Junior Analyst, National Investments
					Marcia Lopez
					David Hockett and Team
					The Kochanskis
				Castle Biotechnology Case: David Plume, PhD, CFA
					David Plume, PhD, CFA
				Castle Biotechnology Case: Sandra Benning, CFA and Claris Deacon
					Claris Deacon
				Lionsgate Limited & Bank of Australia Case: Tony Hill and Team
					Tony Hill and Team
				Lionsgate Limited & Bank of Australia Case: Rob Portman, CFA; Kirk Graeme, CFA; The Delaney's; David Milgram
					Kirk Graeme, CFA
					The Delaneys
					David Milgram
				Gabby Sim
				Practice Problems
				Solutions
		16
		Ethical and Professional Standards (2)
			34
			Asset Manager Code of Professional Conduct
				Introduction, Adopting the Code and Claiming Compliance
					Adopting the Code and Claiming Compliance
					Acknowledgement of Claim of Compliance to CFA Institute
				General Principles of Conduct and Asset Manager Code of Professional Conduct
					Asset Manager Code of Professional Conduct
				Appendix 6: A. Loyalty to Clients
					Appendix 6—Recommendations and Guidance
					A. Loyalty to Clients
				Appendix 6: B. Investment Process and Actions
					Managers must:
				Appendix 6: C. Trading
					Managers must:
				Appendix 6: D. Risk Management, Compliance and Support
					Managers must:
				Appendix 6: E. Performance and Evaluation
					Managers must:
				Appendix 6: F. Disclosures
					Managers must:
				Practice Problems
				Solutions
			35
			Overview of the Global Investment Performance Standards
				Objective and Scope of the GIPS Standards
					1.1 Objective and Scope of the GIPS Standards
				Fundamentals of Compliance
					2.1 Definition of the Firm
					2.2 Definition of Discretion
					2.3 Other Fundamentals of Compliance
				Time-­Weighted Return
					3.1 Time-­Weighted Return
				Miscellaneous Return Calculation Topics
					4.1 Annualizing Returns
					4.2 Treatment of Cash Equivalents
					4.3 Treatment of Expenses and Fees
					4.4 Valuation Requirements
				Composite Time-­Weighted Return Calculations
					5.1 Composite Time-­Weighted Return Calculations
				Composites—Qualifying Portfolios and Defining Investment Strategies
					6.1 Composites—Defining Investment Strategies
				Composites—Including and Excluding Portfolios
				Presentation and Reporting Requirements for Composites
					8.1 Minimum Years of Performance
					8.2 Required Elements of a GIPS Composite Report
					8.3 Portability
					8.4 Sample Reports
				Verification
					9.1 Scope of Verification
					9.2 Verification Process
				Summary
				Practice Problems
				Solutions
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