CFA LEVEL 3 TESTS COMPILATION BUNDLE

Estate deffinition correct answer: is everything a person owns Probate correct answer: the legal process to confirm the validity of the will. what is intestate correct answer: when you die without a will and a court has to decide who gets what civil law vs common law courts correct answe...

bounded rationality correct answer: individuals act as rationally as possible but are constrained by a lack of knowledge and cognitive ability satisfice correct answer: making a reasonable but not necessarily optimal decision the price is right correct answer: asset prices reflect and insta...

Professionalism tenents (KIMM)? correct answer: -Knowledge of the law -Independence and objectivity -Misrepresentation -Misconduct Integrity of capital markets tenents? correct answer: -Material non-public information -Market manipulation Duties to clients are? correct answer: -...

NAREIT correct answer: National Association Of Real Estate Investment Trusts - publically trade REITs - updated monthly - Index for Indirect real estate investment - real time, market cap weighted index of all REITs activel traded on NYSE and AMEX - relatively higher volatility than NCREIF inde...

Absolute return benchmark correct answer: A minimum target return that an investment manager is expected to beat. Accounting defeasance correct answer: Also called in-substance defeasance, accounting defeasance is a way of extinguishing a debt obligation by setting aside sufficient high-quality...

Information Ration correct answer: IR ~ Info Coefficient (depth of knowledge) * SQRT[Investor Breadth] (# of decisions) Components of Total Active Return correct answer: True Active Return, Misfit Active Return, Total Active Risk, True Info Ratio True Active Return correct answer: = Manager...