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

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SCHWESERNOTES™ 2019 LEVEL III CFA® 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