Relevance of Questions from past Level III Essay Exams
This document attempts to identify questions from past Level III essay exams which are still relevant in 2015. There is no gurantee that the information presented here
is 100% accurate. If you have any suggested updates please write to us at: [email protected].
Comment
Year
Question
Relevant
Individual IPS (return calculation, risks, constraints). Part D is irrelevant/obsolete
2006
1
Partial
ALM, Monte Carlo, choosing appropriate asset allocation
2006
2
Yes
Pure bond indexing, active investing strategies
2006
3
Yes
DB Pension fund IPS, constraints, risk factors
2006
4
Yes
Strategic asset allocation, whether investments are suitable
2006
5
Yes
Differences between pension fund IPS and foundation IPS
2006
6
Yes
Corner portfolios
2006
7
Yes
GIPS
2006
8
Yes
2006
9
No
Characteristics of hedge fund benchmarks (only part A is relevant)
2006
10
Yes
Components of trading costs.
2006
11
Partial
2006
12
No
Individual IPS, investor personality type
2007
1
Yes
Part A and B: Outright sale, Exchange funds, Completion Portfolios. Part C: Asset allocation
2007
2
Yes
Behavioral biases
2007
3
Yes
Asset classes, Black Litterman
2007
4
Yes
Endowment IPS, constraints, risk
2007
5
Yes
Life insurance company IPS, constraints, risks
2007
6
Yes
Corridor widths, rebalancing strategies
2007
7
Yes
Active management, style drift, core satellite
2007
8
Yes
Currency, security, market allocation return
2007
9
No
Grinold-Kroner Model. Only parts B and C are relevant.
2007
10
Yes
Individual IPS, constraints, risk ability
2008
1
Yes
Behavioral biases
2008
2
Yes
Pension fund IPS, constraints, risk factors
2008
3
Yes
Corner portfolios, Sharpe ratio, Asset allocation, ALM approach
2008
4
Yes
Sector rotation trades, interest rate convexity, spread duration
2008
5
Yes
Cash and carry arbitrage
2008
6
No
Types of risk, stress testing methods
2008
7
Yes
Trading tactics, VWAP
2008
8
Yes
CPPI, constant mix, buy and hold strategies
2008
9
Yes
Performance attribution analysis
2008
10
Yes
2008
11
Yes
Individual IPS, constraints, risk ability
2009
1
Yes
Life cycle investing
2009
2
Yes
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Relevance of Questions from past Level III Essay Exams
2009
2009
2009
2009
2009
2009
2009
2009
2009
2010
2010
2010
2010
2010
2010
2010
2010
2010
2011
2011
2011
2011
2011
2011
2011
2011
2011
2012
2012
2012
2012
2012
2012
2012
2012
2012
2013
2013
3
4
5
6
7
8
9
10
11
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
3
4
5
6
7
8
9
1
2
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Partial
Yes
Yes
Yes
Yes
Pension fund IPS, constraints, risk factors, spending rule
Not relevant
Grinold-Kroner, Taylor Rule
Strategic asset allocation, whether investments are suitable
Active and passive equity investments, portfolio construction methods, investment styles
Commodities, swaps
Options, counterparty risk, credit risk in a swap
Corridor widths, rebalancing strategies
Benchmark selection, performance measures (Sharpe, M2, Treynor, etc)
Individual investor portfolios, TDA and taxable accounts
Insurance company IPS, behavioral biases
Pension funds
Economics. Capital market expectations.
Corner portfolios, Sharpe ratio, currency return and risk
Immunization portfolio, dollar safety margin
Option strategies (butterfly, straddle etc.) Target beta using futures
VWAP, Implementation shortfall, corridor widths
Evaluating portfolio performance
Behavioral biases, estate planning
Individual investor portfolios
Institutional investor portfolios
Cobb douglas, H Model, Fed Model, Yardeni Model
ALM, Black Litterman, Resampled frontier, Monte Carlo
Dollar duration, rebalancing, trade types,
Historical and Analytical VAR, Hedge currency risk using futures
Performance attribution, sector allocation returns
Individual PM (IPS and Human Capital)
Individual PM (Taxes)
Execution/Monitoring/Rebalancing
Behavioral
Economics
Institutional Portfolio Management
Part E is not relevant.
Derivatives
Derivatives
Individual PM
Individual PM (Estate Planning)
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Relevance of Questions from past Level III Essay Exams
2013
2013
3
4
Yes
Yes
2013
2013
2013
2013
2013
2013
2013
2014
5
6
7
8
9
10
11
Yes
Yes
Partial
Yes
Yes
Yes
Yes
PM - Behavioral
Equity
Economics. Solution makes a referece to the BRICS reading which has been removed; however, the concept is still valid.
Institutional PM
Part C and D are not relevant.
Fixed Income.
Fixed Income.
Risk Management
Performance Evaluation
Entire exam is relevant
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