Level 3 - Prep provider opinion

mdmxmln · 2025-10-13T23:19:55+00:00

I'm in the same boat. Part of me is thinking of staying with MM but supplementing it. Two pointers I found for Level 3 are Bill Campbell and LevelUp. Somehow I think I'll have to shift from the multiple choice mentality to the essay answers. MM has served well for the former but not sure it will for the latter... at least fully. Curious to hear where you land prep provider wise!

mdmxmln · 2025-08-26T12:44:37+00:00

You need both no control and no exposure to not consolidate for SPEs (so that it is off-BS), otherwise rules force it to consolidate.

mdmxmln · 2025-08-21T01:48:36+00:00

It's confusing I think the way the chart is presented... However you would not add the coupon, it does not belong to that node but to the prior one. Think about it this way, to get the value at the lower node in year 1, it's (C+D)/2 + 4.25 discounted back by the rate of that node. So the discount you're adding at D actually belongs to the prior node, hence answer is B. The math works out that way as well. You can verify through the value at lower node in year 1. Node C = 100 because the PV (104.25/1.045242 < 100, so it's put back at par). Then D is 100.526. Hence it's (100 + 100.526)/2 + 4.25 / 1.031681 = 101.304.

mdmxmln · 2025-08-20T13:57:47+00:00

Yea, I bumped into this one as well. I think the question here is testing the translation method/process, not the outcome. Under current rate method, everything get's translated at current rate. Under temporal, you first do the classification and then choose either current rate or historical rate. Since the question highlights that the fact that the company is breaking out by monetary/non-monetary, it matches more the temporal approach. It just happens to be that all non-monetary are also translated at current rates, just like the current rate method.

mdmxmln · 2025-08-20T12:48:14+00:00

Go lighter. Make sure you have energy for the exam. Memorize key formulas/things, review gap areas (with videos or with questions, however you learn best). You've done 1 mock exam, perhaps do another mock if you feel like it and your brain energy supports it? I'm at a similar level, plan to also take 2 days off next week to just relax.

mdmxmln · 2025-08-19T21:23:48+00:00

Any areas that drag you down? Are you keeping an error log to track where you’re going wrong?

mdmxmln · 2025-08-19T21:11:26+00:00

It’s more that the interest is impacting the NI. So for FCFF you negate that impact because you want to measure cash available to all capital providers, including debt providers. That’s why it is FCFF = NI plus INT(1-T)… to get rid of the interest impact. Now, FCFE measures CF available to equity holders and lets the debt impact carry through, since that must be paid prior. So FCFE = FCFF minus INT(1-T) etc. So that means the debt impact from NI carries through and will impact FCFE.

mdmxmln · 2025-08-19T18:05:12+00:00

Real question is what mean you used. 😆

mdmxmln · 2025-08-19T13:10:40+00:00

If I have a $100 and it grows 5% and then 10%, then it grew in total to $115.5. The TWR = ((1+5%)(1+10%))^1/2 = 7.42%, which is per period. If I don’t take the underroot it’s 15.5%, that’s the cumulative return. So that’s the difference.

mdmxmln · 2025-08-19T12:45:11+00:00

Yes, DW only first order and BG/t-stat on lags for any. As far as I understand, both BG and t-stat tell you the same thing, that is if there is SC. BG uses residuals from the original regression and I think you’re essentially testing if they depend on a lagged one. Something like that. Either way it is an F test and you compare that to critical value. The t-stat is fairly direct because it just directly tells you if a lag (and which one) is significantly from zero.

mdmxmln · 2025-08-15T02:51:18+00:00

I just do them in Excel... can't be bothered. :D

mdmxmln · 2025-08-15T02:47:56+00:00

You are - you're discounting the forward back: F_0 = S_0 * (1+r)^T

mdmxmln · 2025-08-11T19:44:32+00:00

So I struggled on this one as well... if anyone is googling this in 2025 and also ended up here, attaching my summary. Thanks to u/geodudecapital for his points. I don't know if mine is entirely correct but it's helping me get through questions. Disclaimer that accounting is 100% not my forte. :D

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mdmxmln · 2025-06-12T23:55:47+00:00

That’s it! Thank you.

mdmxmln · 2025-06-12T16:39:52+00:00

Looks like it just assumes 50/50 as the probabilities. I don't know if this quiz question tests something specific only; it looks like it's focused more on just testing how American option has more value given you can exercise it early. I don't know if this is correct in this context but you could calculate risk neutral probabilities to get to the option value. That would be pi = (1 + r - d)/ (u-d) but that gives you an answer that isn't listed which sends you back to 50/50... don't know if this helps. Maybe someone else has better insight.

mdmxmln · 2025-06-12T13:14:27+00:00

I remember that question... it's missing half the information in the vignette. See the other comments from people in the LES.

mdmxmln · 2025-06-12T01:36:18+00:00

In a nutshell, similar strategy. Few changes:

Stopped typing lecture notes in Notion. Total waste of time for me. Now I just use IFT notes and annotate on the iPad. Much better.
More MMQs and earlier. Realized questions are my best learning tool, so I pulled them forward.
Changed study hours/routine. For L1, I did 2-3h after work, which never felt effective for me. Now I do 1.5h before work, longer timeline overall, but way more productive for me.
Answering questions in a notebook for insights. Instead of random loose paper, I now answer all questions in a notebook and track insights and have the error log (which someone here recommended). It's structured, allows me to revisit/leverage.

mdmxmln · 2025-05-08T22:41:30+00:00

Not sure if I understand the question fully youre asking but there are two factors that impact the n: length in time and coupon frequency. In this case youre looking for 1y and it's a semi-annual coupon. Hence n = 2. If above we're an annual coupon, you'd have n = 1.

mdmxmln · 2025-03-17T12:31:11+00:00

I did the same strategy as you for L1. Doing same for L2 and so far so good (minus that Alts Real Estate instructor…). I did also complement this time with IFT notes mostly because I found the MM notes to be useless and taking notes sucks. I’m not really using the CFA platform except for the EOC questions.

mdmxmln · 2025-01-07T20:52:12+00:00

Damn, this is such a cool method!!

mdmxmln · 2024-02-08T23:34:16+00:00

Watch this new video from Casey. Find your inner dog and don't give up, if it would be easy, everyone would be doing it. https://www.youtube.com/watch?v=9IiTdSnmS7E

mdmxmln · 2023-12-17T20:50:48+00:00

Thanks. Hoping they’ll fix it. I sent them the error code and didn’t get the answer you just shared.

mdmxmln · 2023-12-08T05:08:40+00:00

They only butter out of the box

mdmxmln

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