CFA 2019 Schweser - Level 3 SchweserNotes Book 4: EQUITY PORTFOLIO MANAGEMENT, ALTERNATIVE INVESTMENTS, RISK MANAGEMENT, AND DERIVATIVES

Contents......Page 2
List of pages......Page 5
Learning Outcome Statements (LOS)......Page 12
Module 26.1: Equity Investment Roles......Page 21
Module 26.2: Portfolio Income and Costs, Shareholder Engagement, Passive/Active Management......Page 26
Key Concepts......Page 33
Answer Key for Module Quizzes......Page 35
Module 27.1: Benchmarks......Page 36
Module 27.2: Approaches to Passive Investing......Page 40
Module 27.3: Tracking Error, Return and Risk......Page 43
Key Concepts......Page 45
Answer Key for Module Quizzes......Page 47
Module 28.1: Fundamental vs. Quantitative Approaches......Page 48
Module 28.2: Types of Active Management Strategies......Page 53
Module 28.3: Other Strategies......Page 59
Module 28.4: Equity Investment Style Classification......Page 67
Key Concepts......Page 72
Answer Key for Module Quizzes......Page 75
Module 29.1: Building Blocks of Active Equity Portfolio Construction......Page 77
Module 29.2: Active Share and Active Risk......Page 81
Module 29.3: Allocating the Risk Budget......Page 87
Module 29.4: Implicit Cost-Related Considerations in Portfolio Construction......Page 94
Module 29.5: The Well-Constructed Portfolio......Page 96
Key Concepts......Page 101
Answer Key for Module Quizzes......Page 104
Topic Assessment: Equity Portfolio Management......Page 106
Topic Assessment Answers: Equity Portfolio Management......Page 113
Module 30.1: Overview......Page 118
Module 30.2: Real Estate......Page 124
Module 30.3: Private Equity......Page 127
Module 30.4: Hedge Funds......Page 131
Module 30.5: Commodities and Managed Futures......Page 139
Module 30.6: Distressed Securities......Page 143
Key Concepts......Page 146
Answer Key for Module Quizzes......Page 154
Topic Assessment: Alternative Investments Portfolio Management......Page 156
Topic Assessment Answers: Alternative Investments Portfolio Management......Page 159
Module 31.1: Risk Management......Page 160
Module 31.2: Value at Risk (VaR)......Page 165
Module 31.3: Credit Risk......Page 173
Module 31.4: Managing the Risks and Assessing Results......Page 177
Key Concepts......Page 184
Answer Key for Module Quizzes......Page 190
Topic Assessment: Risk Management......Page 196
Topic Assessment Answers: Risk Management......Page 198
Module 32.1: Hedging With Futures and Forwards......Page 200
Module 32.2: More Application......Page 204
Module 32.3: Synthetic Positions......Page 209
Module 32.4: Hedging Currency......Page 213
Key Concepts......Page 218
Answer Key for Module Quizzes......Page 220
Module 33.1: Option Basics......Page 222
Module 33.2: Spread Strategies......Page 232
Module 33.3: More Spread Strategies......Page 238
Module 33.4: Interest Rate Options and EAR......Page 244
Module 33.5: Interest Rate Caps, Floors, and Collars......Page 249
Module 33.6: Delta Hedging......Page 255
Key Concepts......Page 263
Answer Key for Module Quizzes......Page 265
Module 34.1: Using Interest Rate Swaps......Page 269
Module 34.2: Using Currency Swaps......Page 274
Module 34.3: Equity Swaps......Page 279
Module 34.4: Using Swaptions......Page 281
Key Concepts......Page 286
Answer Keys for Module Quizzes......Page 289
Topic Assessment: Risk Management Applications of Derivatives......Page 292
Topic Assessment Answers: Risk Management Applications of Derivatives......Page 294
Formulas......Page 296
Appendix......Page 298