Revised 28 August 2022
When I discover an error in my Survivor’s Guide to CFA Institute Command Words, in my Level III list of lists, or in one of my mock exams, (or a candidate discovers one and tells me about it), I’ll post an erratum here and make the correction immediately. Therefore, if you see an erratum here, the error may not appear in your copy; I may have corrected it before you downloaded your copy. If your copy has an error listed here, please download a new copy; that error will have been corrected.
To make the corrections easier to spot, I’ve shown the old, incorrect text in blue and the new, correct text in red.
2022 Level III List of Lists
Added: 39. Requirements for an Index to be Used as a Benchmark
2022 Boilerplate Investment Objectives for Institutional Investors
Added a reconciliation of the investment objectives for a bank to the (inadequate) sentence in the curriculum.
2022 Level III Mock Exam #1 Morning Session
Question 7-B, Answers – Full: Under Manager self-identification: large-cap should be 26%, not 62%, small-cap should be 24%, not 9%, growth should be 65%, not 59%, and value should be 35%, not 41%.
2022 Level III Mock Exam #1 Afternoon Session
BFK Case Scenario: Exhibit 1, Active Share for Aleph should be 0.48, not 0.21, and Active Share for Beth should be 0.21, not 0.48 (i.e., the Aleph and Beth values should be exchanged).
Soufrière Case Scenario, Answers: For question 19 there were several incorrect numbers in the text, but the calculations were all correct. Download the latest version of the file for the correct discussion.
2022 Level III Mock Exam #2 Morning Session
Updated Answer Templates to fix some formatting problems.
Question 1-A, Answers – Full: The formula for FVIF has been removed.
Question 1-B, Answers – Full: The formula for FVIF has been removed.
Question 2: Exhibit 2, portfolio D, convexity should be 74.77 years2, not 74.07 years2.
Question 2-A, Answers – Full: The correct total price for the bonds is worth 1 mark, not 2 marks.
2022 Level III Mock Exam #2 Afternoon Session
Blue Lizard Case Scenario, Answers: For question 23, for the 11-year bond, the price in one year should be AUD 1,001.69, not AUD 1,004.28.
2022 Level III Mock Exam #3 Morning Session
Updated Answer Templates to fix some formatting problems. Download the latest version of the file for the corrected templates.
Question 3, Questions: the first sentence on p. 9 should read, “BCM’s fixed income manager, Charles Theate, is considering the purchase of a 3-year, USD denominated, option-free, Ba1-rated corporate bond that yields 7.55%”, not “Ba3-rated corporate bond”.
2022 Level III Mock Exam #3 Afternoon Session
KTO Case Scenario, Answers: The correct answer for question 33 is a. Yes, not c. No, because Standard VI(B) does not apply in this situation.
VDAK Case Scenario: The answer choices and calculation for question 4 have been revised. Download the latest version of the file for the corrected answers.
VAR Case Scenario, Answers: The last sentence in the explanation for question 13 should read, “A shorter duration improves portfolio performance when interest rates increase.”, not “A shorter duration improves portfolio performance when interest rates decrease.”
2022 Level III Mock Exam #4 Morning Session
Question 4-A, Questions: Exhibit 1, the expected BRL/EUR spot rate should be 5.4, not 5.14.
Question 8-A, Questions: Exhibit 1, the Correlation of Geordinia equity returns and GIM returns should be 0.323, not 0.312.
2022 Level III Mock Exam #4 Afternoon Session
Question 20, Answers: The last sentence should read, “As SMG meets all of these criteria, they may include the historical performance of WRT.”, not “As SMG meets all of these criteria, they must include the historical performance of WRT.”
MPF Case Scenario: In the last paragraph on p. 11, the contract price should be BRL/EUR 6.5904, not BRL/EUR 6.9668.
2022 Level III Mock Exam #5 Morning Session
Question 1, Questions: Sengvanny’s comment should read “I disagree. The price will most likely go up to between NZD 100 and NZD 110, but I worry that it could go down. In any case, I don’t want to lose a ton of money if I’m wrong, but I’d like to maximize my profit if I’m right.”, not “I disagree. The price will most likely go up to NZD 100 or higher, but I worry that it could go down. In any case, I don’t want to lose a ton of money if I’m wrong, but I’d like to maximize my profit if I’m right.”.
Question 3, Questions: In the second paragraph, first bullet point: the name Cronie should be Colino. In the second paragraph, second bullet point: the name Tjon-A-Loi should be Just.
Question 5-D, Answers – Short: the value should be ACT/PAG 2.7371, not ACT/PAG 2.7391.
Questions 6-A, 6-B, and 6-C, Answers – Short: the answers given were for a different set of questions. Download the latest version of the file for the corrected answers.