Revised 7 May 2021
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.
2021 Level III List of Lists
Under 1. Behavioral Biases, c. Other biases/fallacies, added Hot hand fallacy.
Added five new sections: Retirement Stages of Life, Behavioral Considerations in Retirement, Income Tax Regimes, Common Institutional Investment Approaches, and Specific Problems with Various Alternative Investment Benchmarks
2021 Level III Morning Session Mock Exam #1
Question 3-C: Added a more detailed explanation of how to apply the new (Yale) spending rule. Download the latest version for the full explanation.
Question 10-A: Clarified that revised decision price (pre-2020 terminology) is the same as arrival price (2020-and-later terminology)
Question 10-A: The denominators in the implementation shortfall (basis points) formulae should be S × pd, not S × p0.
There were some minor formatting problems in the answer templates. Download the latest version.
2021 Level III Morning Session Mock Exam #2
Question 4-Bi: The net amount paid is KHR 706,450,000, not KHR 822,825,000. Download the latest answers to see the full calculation.
Question 4-Bii: The total settlement price is KHR 35,040,075,000, not KHR 35,156,450,000. Download the latest answers to see the full calculation.
Question 5: In Exhibit 2, the title should read Yield to Maturity, BEY, not merely Yield to Maturity.
Question 9-C, part i: in the answer template and in the guideline answers and the short answers, the question should read modified duration of ACBJ’s shareholders’ equity, instead of effective duration of ACBJ’s shareholders’ equity.
Question 10: Rotated Exhibit 2 90° clockwise to make it easier to read onscreen.
There were some minor formatting problems in the answer templates. Download the latest version.
2021 Level III Morning Session Mock Exam #3
There were some minor formatting problems in the answer templates. Download the latest version.
2021 Level III Morning Session Mock Exam #4
There were some minor formatting problems in the answer templates. Download the latest version.
2021 Level III Morning Session Mock Exam #5
Question 6: In Exhibit 1, the probabilities of loss for the investments should be DKN 1%, ZPX 4%, GRY 2%, LSQ 3%, instead of DKN 20%, ZPX 15%, GRY 5%, LSQ 10%. Download the latest questions to see it.
Question 7-C: In the questions, at the end of the first paragraph at the top of p. 16, this sentence should be added: “Ferdinand uses the Brinson model for performance attribution.“
Question 8: In the paragraph between questions 8-B and 8-C, the first sentence should read “Six months later, Abdujalilov identified another private limited partnership – Krimets Partners (KP) – which will invest in private real assets with a structure identical to KH’s.“, not “Six months later, Abdujalilov identified another private limited partnership – Krimets Partners (KP) – which will invest in private credit with a structure identical to KH’s.“
Question 8-C: The wording of the question was changed from “Evaluate the appropriateness of Abdujalilov’s strategy for investing in private real assets and private credit, given his investment goals” to “Evaluate the appropriateness of Abdujalilov’s approach for investing in private real assets and private credit, given his investment goals for those asset classes“. Download the latest questions to see it.
Question 9: In Exhibit 1, the active employees’ average age is 51.7 years, not 39.7 years.
There were some minor formatting problems in the answer templates. Download the latest version.