"Portfolio Construction and Revision" is a sub-heading of "Portfolio Management and Wealth Planning" (Part X of CFA Institute Candidate Body of Knowledge, or CBOK). As portfolio management and wealth planning are significant disciplines that CFA® candidates and charterholders find themselves engaged in on a day-to-day basis, it is useful to explore functionality within the terminal setting that can be applied to these tasks.
Read MoreA discount rate helps analysts and managers determine the value (or potential value) of an investment or portfolio. They’re an important part of the CFA® Level I exam.
Read MoreI began my career in the bond market research department of a major sell-side investment bank. At that time, "Wall Street" was run by firms whose salespeople, traders, and research teams established the markets’ liquidity and dictated market prices to clients.
Read MorePreparing for the CFA® certification process involved devoting a year and a half of my free time to pursuing a single goal with very narrow margins for success at each stage across three exams. Although I completed the process with the fastest timing possible—namely, December for Level I and June for Levels II and III
Read MoreDespite what many would like to believe, the active vs. passive debate is very much alive and kicking.In fact, it has never been so relevant. One just needs to look at flows, performance, and regulatory agendas. All seem to lean toward the passive camp, while active managers are trying to find ways to keep their jobs.
Read MoreComparing mortgage refinance options with varying terms is a unique mathematical challenge, and also one that consumers face often in a declining rate environment.
Read MoreI recently spoke to a finance class at a local college, a group of third-year finance students looking for an opportunity to hear from industry professionals. I have had the pleasure of speaking to groups of students like this on various occasions and I always enjoy it.
Read MoreBenjamin Graham made the call for a special professional rating for security analysts in a now-famous piece written in January 1945. The purpose of such a designation was to reassure investors that those giving advice regarding security transactions were qualified, knowledgeable professionals with high ethical standards.
Read MoreIf you’re reading this, you may be thinking about the CFA® designation and what it can do for your career. Or you might already be a candidate pursuing the charter.
Read MoreI first learned about the CFA Program as an undergrad finance major in the mid-1980s. I had always had an interest in the stock market, and would frequently read through the stock tables in the local newspaper and in the copy of Barron’s at the school library.
Read MoreThe one subject that really stuck with me long after having passed the CFA® Level III exam was that of behavioral finance. Thanks to CFA Institute for introducing me to this new—perhaps lifelong—buddy. When I started preparing for the behavioral finance section, it didn’t come across as very interesting and didn't hold my focus for long.
Read MoreWhen creating the CFA exam, there’s a natural tendency to simplify so that participants from different backgrounds can all gain an understanding of multiple areas of finance.
Read MoreBuy and hold (B&H), constant mix, and constant proportion portfolio insurance (CPPI) are commonly used dynamic strategies for rebalancing portfolios.
Read MoreAlternative Risk Premia (ARP) portfolios have started to supplant hedge fund investments in institutional portfolios. Perceived lower cost, better liquidity, and improved transparency have diverted assets or created new demand within the alternative space. As part of the move toward factor investing, we will discuss what ARPs are and their pros and cons for investors.
Read MoreBack in January of 2020, which feels like years ago, I wrote an article pointing out that credit markets were setting themselves up for a potentially dangerous outcome. In no way could I or anyone else have predicted that a global pandemic and worldwide shutdown of entire economies would be the catalyst, but the conditions were ripe for any spark to start the fire.
Read MoreChoosing to embark on the path to your CFA charter is a big decision that needs to be made only after understand the commitment needed to succeed.
Read MoreWe witnessed a remarkable change in sentiment after November of 2016.
Read MoreAlternative data sets have been expanding rapidly in the last five years. From satellite imagery to POS transaction receipts and phone location data, the realm of the measurable has expanded, requiring infrastructure and skills to exploit properly. AI and machine learning are helpful, but is it an intellectual pursuit or adds value to a fundamental process?
Read MoreAs you go about your daily life, especially when making choices involving some sort of trade-off (exchanging money for goods and services, exchanging time for money, making investment decisions, deciding how to get the best value for money on your weekly grocery trip), you probably think of yourself as cool, calm, rational, and in control.
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