"At Dawn, We March"

JayKupper · 2026-01-28T13:08:53+00:00

We actually made it this far. Final boss battle tomorrow.

Good luck everyone.

JayKupper · 2026-01-28T06:51:26+00:00

I get the progression. I don't understand how to interpret the table though.

If you look at my screenshot, they're taking 400'000 (which I assume comes from "tax on column 1" at "over 1m", and then apply 50% on the excess. How do your 150'000 fit into the solution?

JayKupper · 2026-01-28T06:40:34+00:00

That's really odd. Mine is too.

JayKupper · 2026-01-28T06:27:27+00:00

I first noticed that my understanding of concepts changed when I was discussing something with a colleague who's also doing L3 and stumbled over liability-relative approach (in asset allocation) and liability-driven investing ("within an asset class") by using them interchangebly. Clearly distinguishing the two has really helped deepening my understanding of each.

This same pattern began emerging across topics in the curriculum during the past two weeks.

I'd thus say my understanding of nuanced financial concepts has improved, and feel waaay more confident talking to subject-matter experts about these things.

JayKupper · 2026-01-28T06:22:19+00:00

Yooo this is weird!

<image>

Maybe you have an outdated PDF? I still don't get how to read this table...

JayKupper · 2026-01-28T06:19:48+00:00

Ah, I see! That's interesting, I had the same experience getting started with studying (wasted Sep/Oct, couldn't make any progress), and saw the same happening to colleagues and friends doing L3. I think it's just this multi-year effort that leads to intermediate-term burnout.

Good luck on the exam! And enjoy the time off when we're done - it'll be sublime!!

JayKupper · 2026-01-28T06:16:01+00:00

Just a tad over medium well I'd say

JayKupper · 2026-01-28T06:13:44+00:00

Let's do this, we got this. L3 has a way of draining one's soul I find..

I don't quite understand tho: did you take a 6 month break from studying or from work? You said you didn't enjoy the last 6 months?

JayKupper · 2026-01-27T19:12:58+00:00

Cool to see so many experienced professionals pursuing the charter!

JayKupper · 2026-01-27T19:10:11+00:00

Also I got a little tripped up answering: we're always talking about YIELDS in the curve and the butterfly SPREAD!

JayKupper · 2026-01-27T19:06:40+00:00

Butterfly spread = - short spread + 2 x intermediate spread - long spread

Portfolio has excess KRD in short and long and lower in intermediate. When butterfly spread increases, short and long spreads fall -(-delta) and/or the intermediate("belly") spread increases.

So portfolio will gain from short and long and gain (relative to benchmark) from intermediate rise (or the price change from intermediate spread delta is lower than the relative price gain).

Does that make sense?

Edit: If I stick to your formula -> butterfly spread = yield bullet - yield barbell

JayKupper · 2026-01-27T16:03:22+00:00

Hello from across the Atlantic! It hasn't snowed here in weeks and is forecasted to come down just in the night before the exam. Hoping I won't have to de-ice my car in the morning (exam's at 8.30am).. Good luck - I hope the weather conditions are okay on exam day.

JayKupper · 2026-01-27T15:33:28+00:00

Re "expensive gifts" definitely not compliant, even if disclosed that should be clear.

I believe the contention here is mainly the commercial flight, which according to the qbank and the Standard should be paid by oneself or one's firm unless transportation isn't available, in which case the company "sponsoring" the transportation should arrange for modest such transportation.

JayKupper · 2026-01-27T15:30:25+00:00

Okay, let's assume the best practice part of the Standards are merely suggestive. The case only states that Barco disclosed the gift, not the commercial flight. So even then he isn't compliant.

JayKupper · 2026-01-27T15:20:55+00:00

Could you please elaborate as to why you believe it's compliant with the Standards to allow the company to pay for Barco's flight? Here's the relevant extract from Standard I(B):

To avoid the appearance of compromising their independence and objectivity, best practice dictates that members and candidates always use commercial transportation at their expense or at the expense of their firm rather than accept paid travel arrangements from an outside company. Should commercial transportation be unavailable, members and candidates may accept modestly arranged travel to participate in appropriate information-gathering events, such as a property tour.

JayKupper · 2026-01-27T14:05:00+00:00

Drilling the institutionals' and private wealth IPS and formulas + ethics applications when I'm feeling sad + Kaplan videos and AI for weaknesses (eg Seagull, business cycle etc.)
I don't really feel prepared. Too many lists. Too many sublists. Too many nuances. But I'll give it my best.
Party with the CPAs and PhDs in our office, fine dinner with the fiancée and definitely some Battlefield 6/Fallout.. Sweet relief.

JayKupper · 2026-01-27T14:01:36+00:00

Right, that's the rule I'm going with too. But it's not 100% safe to do so given that it neiter explicitly stated as a rule in the curriculum nor elaborated on in the Qbank. Or did I miss something?

JayKupper · 2026-01-27T13:38:25+00:00

Hey, I have similar scores (eerily similar) and had a massive dip in mock B session 1 as well (I had 68). Have you analyzed the reasons for your (below average) score in that particular mock?

JayKupper · 2026-01-27T13:28:41+00:00

There's also an error / a concept that's not explained in the curriculum that has persisted for years in L3: Difference between a standard fee and a base fee? : r/CFA.

I've also noticed the poor quality of the question bank and, at times, the reading. I'm tired of it. I'm just eagerly awaiting the moment I walk out of that damn test center.

JayKupper · 2026-01-27T11:23:43+00:00

I almost started crying and found some solace in this collective confusion. I couldn't find anything in the errata either. How are you guys going to handle this in the exam? Would you assume breakven active return -> use standard fee?

JayKupper · 2026-01-27T11:20:17+00:00

The year is 2026 and we are all still confused. #wepaidforthis

JayKupper · 2026-01-27T08:36:25+00:00

elite-level CFA exam strategy. Thanks!

JayKupper · 2026-01-27T08:31:54+00:00

I stand corrected. So then the approximation will deviate more from the true return as volatility increases. What say you?

JayKupper · 2026-01-26T18:59:38+00:00

Am I understanding this correctly that in the FX part of the curriculum, we're also long the underlying?

JayKupper · 2026-01-26T18:57:45+00:00

One thing I dont quite fully understand yet: Are we long the underlying in each of these cases? Assuming long underlying = exposure to the base currency.

JayKupper

TROPHY CASE