5/27/2020 Cfa Level 3 Formula Sheet Pdf
Came across this Finquiz Level 1 formula PDF online and thought I'd share.it looks pretty good, and I'm sure will be helpful in the run up to December! Level 1 Comprehensive Formula PDF. Stuj79 London Posts: 155 Jr Portfolio Manager. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
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Download CFA Level 1 Books, Study Material & Notes in PDF format for free. CFA Books 2018 are available here for download. We’ve provided best recommended Authors and Text books of CFA Level 1.
Earlier we published Chartered Financial Analyst – Eligibility, Fee, Duration, Salary. Now you can get CFA Level 1 Schweser Notes, Wiley CFA Level 1 Books, Preparation Material and Question Bank. Download Fundamentals of CFA Book PDF ( सीएफए स्तर 1 पुस्तकें), Financial reporting analysis, FRA Formulas Sheet PDF, Ethics, Quantitative analysis, Fixed income analysis PDF, Equity InvestmentEconomics Notes, Corporate finance, Portfolio management, and wealth planning, Derivatives Notes PDFAlternative investment PDF Notes.
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Finquiz. Irfanullah. FitchBuy CFA Level 1 Books at Amazon onlineYou can buy CFA Level 1 Books at Amazon also with great discounts. What is the best book to prepare for the CFA Level 1 exam?Don’t make the foolish decision of purchasing multiple materials from the above list. Any one or two from the list will suffice. Referring more than 1 or 2 material won’t improve your odds of clearing the exam.
Practicing lots of questions will definitely increase your chances. Schweser is the best book to prepare for the CFA Level 1Kaplan Schweser Notes is the bible for CFA preparation. Make sure that you complete Schweser cover to cover.
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RISK MANAGEMENT continued.Credit Risk to an option is borne by the long position only. Because nonfinancial risks can be difficult to quantify, managers will buy insurance protection rather than try to estimate VAR. Methods for Managing Market Risk: Position limits, liquidity limits, performance stopouts, and risk factor limits.
Risk Budgeting – The process of determining which risks are acceptable and how total enterprise risk should be allocated across business units or portfolio managers. Measures to help control credit risk are limiting exposure to any single debtor, marking to market, assigning collateral to loans, payment netting agreements, setting credit standards, and using credit derivatives. Risk-Adjusted Performance Measures include the Sharpe ratio, risk-adjusted return on invested capital (RAROC), return over maximum drawdown (RoMAD), and the Sortino ratio.
Rp RoMAD = max. Drawdown Sortino =. Butterfly Spread – Buy one call with low exercise price, buy another with a high exercise price, and short two calls with a medium exercise price.
Buyer profits if stock price stays near price of written calls. Profit Long calls Two short calls S. Collar – Combination of a protective put and covered call. Owner of an asset buys a protective put and sells a call to pay for the put. If the premiums are equal, called a zero-cost collar. Straddle – Purchase a call and a put with the same exercise price and expiration date. A bet on volatility: profit if the stock price experiences large movement in either direction.
Profit exercise priceR p − MARlong straddledownside deviationSCurrency Management. Strategic Hedge Ratio – Manager has responsibility for managing the portfolio and currency exposure.
Currency Overlay – Separate manager follows IPS. Separate Asset Allocation – Managed by separate manager under separate guidelines.SS15: RISK AND DERIVATIVES Changing Portfolio Duration with Bond Futures Vp MD T − MDP # contracts = MDF Pf (multiplier)(. Box Spread – Combination of a bull call spread and a bear put spread on the same asset. The payoff to combining the bull call and bear put spreads will produce the same payoff, regardless of the value of the underlying asset. (Risk-free rate) $ or%# contracts = N =( THeld )(1 + R F )T (PF )( Multiplier )Creating Synthetic (# contracts mustCash be a round number ) V (1 + R F )T # equity contracts = − P PfChanging the Portfolio Beta with Equity Futures β − βP Vp # contracts = T βF PF (multiplier )Altering Debt and Equity AllocationsFrom equity to bonds: 1. Reduce systematic risk (beta) to zero by shorting stock index futures.
↑ duration of the synthetic cash (MDP = 0) by taking a long position in bond futures. From bonds to equity: 1. Reduce all interest rate risk (MDT = 0) by shorting bond futures. ↑ equity exposure by buying equity index futures. MD = 0 assumes no short-term cash investment.Option Strategies.
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Covered Call – Sell call on owned asset. In return for call premium, upside potential is foregone. Protective Put – Buy a put option on asset. If hedged asset declines in value, put increases in value. Loss is limited to put premium.
Bull Spread – Buy low strike call and sell high strike call; profit if stock price rises. Bear Spread – Short bull spread: buy high strike call and short low strike call.CFA13-L3-QS.indd 2bull call spread box spread bear put spreadRF)Synthetic Equity Index from T-Billslong putlong callXLXHSTInterest Rate Options. Call: Used to limit the cost of borrowing. If rates rise, call pays off, reducing effective loan rate. Payoff = (NP)max(0, LIBOR – strike rate)(D / 360). Put: Used to maintain the return on an asset (e.g., floating rate loan). If rates fall, the option pays off.
Payoff = (NP)max(0, strike rate – LIBOR)(D/360). Cap: Series of calls (caplets). Floor: Series of puts (floorlets). Interest Rate Collar: Combination of a put and call, usually a long put and short call. Profit and loss from interest rate movements are constrained. Plain Vanilla Interest Rate Swap: Company X agrees to pay Company Y a periodic fixed rate on a notional principal. Company Y agrees to pay Company X a periodic floating rate on the same NP.Change Portfolio Duration with Swaps MDPay Floating = MDFixed − MDFloating 0 MDPay Fixed = MDFloating − MDFixed Tax Rate.
Investment horizon ↑, tax drag ↑. Investment return ↑, tax drag ↑ Tax-deferred Accounts: Front-end benefits: contrib. Current taxes, accrue tax free, taxed in future. FVIFTDA = (1 + R )N (1 − TN ) Tax-exempt accounts: Back-end benefits. Made after-tax, accrue tax free, tax-free in future.
FVIFTEA = (1 + R )Ncontinued on next page.10/3/2012 4:28:40 PM.
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