Was studying trading strategies and unlike last year, the chapter is overloaded with formulae and like has gotten ugly. Would love some suggestions as to how to approach this chapter.
Bill, would love to hear what you’ve gotta say.
Thanks in advance
Are you sure about that? I am L3 re-taker and found everything to be easier than previous exam. Literally, everything. I did not cover the alternative investment section but I do not expect major differences. And btw, I read all the new chapters in the curriculum.
can you give some examples? im just kind of curious what formulas they would give that weren’t in the section last year
Suck it up… buttercup.
AI is super different this time but not hard. Its easy to understand. I feel they’ve made the smaller subjects far more difficult.
Derivatives have way less calculations and the section revolves around some standard ones that were already covered before in L1 and L2. There are no IR swaps for example or mechanisms in borrowing and lending through brokers. Also found trading section to be far simpler with only few new calculations but without some standard old ones. Not gonna mention overviews of private and institutional wealth/asset management. Economics has some new stuff, especially second part but overall seems quite straightforward.
Im pretty sure swaps are an integral part of the L3 curriculum.
I wrote up slides for Marc LeFebvre on this reading, so I know it well.
The notation they’re using for implementation shortfall is more complicated than what they’ve used in the past, but the mechanics are the same. I wrote an article on implementation shortfall in October, 2018 and just updated it for the new reading: http://www.financialexamhelp123.com/implementation-shortfall/
(Full disclosure: as of 4/25/16, there is a charge to read the articles on my website. You can get an idea of the quality of the articles by looking at the free samples here: http://www.financialexamhelp123.com/sample-articles/.)
Oops, I mean IR options, not IR swaps.
Implementation shortfall wasn’t the hardest topic but it was by far my least favorite part of L3. Must’ve done a thousand practice problems lol
Will check it out. Thanks Bill. Did the chapter again yesterday and it seemed easy. Took 3 days to actually get quite familiar with this chapter.
Plus its not the implementation shortfall part but rather the part after that like the index cost, etc. Very easy to mix up and get confused with.
