A discount rate helps analysts and managers determine the value (or potential value) of an investment or portfolio. They’re an important part of the CFA® Level I exam.
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Preparing for the CFA® certification process involved devoting a year and a half of my free time to pursuing a single goal with very narrow margins for success at each stage across three exams. Although I completed the process with the fastest timing possible—namely, December for Level I and June for Levels II and III
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Despite what many would like to believe, the active vs. passive debate is very much alive and kicking.In fact, it has never been so relevant. One just needs to look at flows, performance, and regulatory agendas. All seem to lean toward the passive camp, while active managers are trying to find ways to keep their jobs.
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I recently spoke to a finance class at a local college, a group of third-year finance students looking for an opportunity to hear from industry professionals. I have had the pleasure of speaking to groups of students like this on various occasions and I always enjoy it.
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Benjamin Graham made the call for a special professional rating for security analysts in a now-famous piece written in January 1945. The purpose of such a designation was to reassure investors that those giving advice regarding security transactions were qualified, knowledgeable professionals with high ethical standards.
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I first learned about the CFA Program as an undergrad finance major in the mid-1980s. I had always had an interest in the stock market, and would frequently read through the stock tables in the local newspaper and in the copy of Barron’s at the school library.
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Buy and hold (B&H), constant mix, and constant proportion portfolio insurance (CPPI) are commonly used dynamic strategies for rebalancing portfolios.
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We witnessed a remarkable change in sentiment after November of 2016.
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Alternative data sets have been expanding rapidly in the last five years. From satellite imagery to POS transaction receipts and phone location data, the realm of the measurable has expanded, requiring infrastructure and skills to exploit properly. AI and machine learning are helpful, but is it an intellectual pursuit or adds value to a fundamental process?
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The old world of investing has lately been crumbling. Passive investment management has captured the bulk of equity inflows, which has fueled remarkable growth in index mutual funds and exchange-traded funds (ETFs).
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For my entire career as a trader, portfolio manager, and investor, I've relied on a combination of systematic (or rules-based) methodology, fundamental analysis (understanding the trends of significant economic indicators), and technical analysis (the historical review of price data and charts) to understand market trends and actions. The building blocks of successful active management (alpha generation) must incorporate elements of each of these analysis tools.
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You spend six months ignoring your family, blowing off close friends’ weddings, and generally being an irritable pain in the butt. When your friends see you, the first question they ask is, “How’s CFA studying going?” because they know you have nothing else more important going on in your life. At least all your hard work pays off, right?
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Everyone feels stress and pressure in any significant contest. Prepared or not, when the chips are down we all feel our adrenaline rise. Y
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Taking the CFA Level I exam when you’ve got no financial background can be a daunting task. In fact, it can seem downright impossible to pass when you have nothing to go on.
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In contrast to the externally imposed regulatory standards in the insurance and banking industries, investment risk management requirements for investment companies had been largely self-imposed until last October, when the SEC voted to adopt rules to modernize reporting and disclosure of information. This move is meant to enhance liquidity risk management of open-end funds.
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Benjamin Graham made the call for a special professional rating for security analysts in a now-famous piece written in January 1945. The purpose of such a designation was to reassure investors that those giving advice regarding security transactions were qualified, knowledgeable professionals with high ethical standards.
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The new 2022 CFA curriculum has been released for all 3 levels. This article will summarize all of the important changes to the curriculum and how it affects your preparation.
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Risk management is an important feature of the CFA® exams. Since many candidates work for or aspire to work for banks, an understanding of credit risk is critical, simply because credit risk is the main risk-exposure element of the vast majority of banks in any country.
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After the announcement of Panera’s deal to be taken private by JAB Holdings in April 2017, the company was quick to tout the benefits of exiting the public markets.
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