2026 CFA Program Curriculum Level III Private Markets Pathway Box Set E-Book

• Herausgeber: John Wiley & Sons
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• Sprache: Englisch

Seitenzahl: 4326

Veröffentlichungsjahr: 2025

Beschreibung

Discover the official resource for success on the 2026 CFA Level III exam. Get your copy of the CFA Program Curriculum now.

The 2026 CFA Program Curriculum Level III Private Markets Pathway Box Set contains the content you need to perform well on the Level III CFA exam in 2026. Designed for candidates to use for exam preparation and professional reference purposes, this set includes the full official curriculum for Level III and is part of the larger CFA Candidate Body of Knowledge (CBOK). Developed to prepare you for the Level III exam's heavy reliance on information synthesis and solution application within the core curriculum as well as the portfolio management, private markets and private wealth pathways, the Level III curriculum will help you master both calculation-based and word-based problems.

The 2026 CFA Program Curriculum Level III Private Markets Pathway Box Set allows you to:

• Develop critical knowledge and skills essential in the industry.
• Learn from financial thought leaders.
• Access market-relevant instruction.

The set also features practice questions to assist with your mastery of key terms, concepts, and formulas. The volumes in the Level III box set are:

Core Curriculum

• Volume 1: Asset Allocation
• Volume 2: Portfolio Construction
• Volume 3: Performance Measurement
• Volume 4: Derivatives And Risk Management
• Volume 5: Ethical and Professional Standards

Private Markets

• Volume 1: Private Markets Pathway

Indispensable for anyone preparing for the 2026 Level III CFA exam, the 2026 CFA Program Curriculum Level III Private Markets Pathway Box Set is a must-have resource for those seeking the advanced skills required to become a Chartered Financial Analyst.

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ISBN 978-1-39436-066-6 (paper)

ISBN 978-1-39435-316-3 (ebook)

May 2025

Please visit our website atwww.WileyGlobalFinance.com.

Table of Contents

Cover

Copyright Page

Table of Contents

2026 CFA Program Level III - Core Volumes 1-5

2026 CFA Program Level III - Core Volume 1: Asset Allocation

Title Page

Accessibility Page

Table of Contents

How to Use the CFA Program Curriculum

CFA Institute Learning Ecosystem (LES)

Designing Your Personal Study Program

Errata

Other Feedback

Asset Allocation

Capital Market Expectations, Part 1: Framework and Macro Considerations

Learning Outcomes

1. Introduction & Framework for Developing Capital Market Expectations

1.1. Framework and Challenges

1.1.1. A Framework for Developing Capital Market Expectations

2. Challenges in Forecasting

2.1. Limitations of Economic Data

2.2. Data Measurement Errors and Biases

2.3. The Limitations of Historical Estimates

2.4. Ex Post Risk Can Be a Biased Measure of Ex Ante Risk

2.5. Biases in Analysts’ Methods

2.6. The Failure to Account for Conditioning Information

2.7. Misinterpretation of Correlations

2.8. Psychological Biases

2.9. Model Uncertainty

3. Economic and Market Analysis: Exogenous Shocks to Growth

3.1. The Role of Economic Analysis

3.2. Analysis of Economic Growth

3.2.1. Exogenous Shocks to Growth

4. Applying Growth Analysis to Capital Market Expectations

4.1. A Decomposition of GDP Growth and Its Use in Forecasting

4.2. Anchoring Asset Returns to Trend Growth

5. Approaches to Economic Forecasting

5.1. Econometric Modeling

5.2. Economic Indicators

5.3. Checklist Approach

5.4. Economic Forecasting Approaches: Summary of Strengths and Weaknesses

6. Business Cycle Analysis, Phases of the Business Cycle and Market Expectations and the Business Cycle

6.1. Phases of the Business Cycle

6.2. Market Expectations and the Business Cycle

7. Inflation and Deflation: Trends and Relations to the Business Cycle

8. Analysis of Monetary and Fiscal Policies

8.1. Monetary Policy

9. Zero or Negative Interest Rates And Implications for Capital Markets Expectations

9.1. Implications of Negative Interest Rates for Capital Market Expectations

10. The Monetary and Fiscal Policy Mix and the Shape of the Yield Curve and the Business Cycle

10.1. The Shape of the Yield Curve and the Business Cycle

11. International Interactions

11.1. Macroeconomic Linkages

11.2. Interest Rate/Exchange Rate Linkages

12. Summary

References

Practice Problems

Solutions

Capital Market Expectations, Part 2: Forecasting Asset Class Returns

Learning Outcomes

1. Introduction

2. Overview of Tools and Approaches

2.1. The Nature of the Problem

2.2. Approaches to Forecasting

2.2.1. Statistical Methods

2.2.2. Discounted Cash Flow

2.2.3. Risk Premium Models

3. Forecasting Fixed Income Returns

3.1. Applying DCF to Fixed Income

3.2. The Building Block Approach to Fixed-Income Returns

3.2.1. The Short-term Default-free Rate

3.2.2. The Term Premium

3.2.3. The Credit Premium

3.2.4. The Liquidity Premium

4. Risks in Emerging Market Bonds

4.1. Economic Risks/Ability to Pay

4.2. Political and Legal Risks/Willingness to Pay

5. Forecasting Equity Returns

5.1. Historical Statistics Approach to Equity Returns

5.2. DCF Approach to Equity Returns

5.3. Risk Premium Approaches to Equity Returns

5.3.1. Defining and Forecasting the Equity Premium

5.3.2. An Equilibrium Approach

5.4. Risks in Emerging Market Equities

6. Forecasting Real Estate Returns

6.1. Historical Real Estate Returns

6.2. Real Estate Cycles

6.3. Capitalization Rates

6.4. The Risk Premium Perspective on Real Estate Expected Return

6.5. Real Estate in Equilibrium

6.6. Public vs. Private Real Estate

6.7. Long-Term Housing Returns

7. Forecasting Exchange Rates

7.1. Focus on Goods and Services, Trade, and the Current Account

7.1.1. Trade Flows

7.1.2. Purchasing Power Parity

7.1.3. Competitiveness and Sustainability of the Current Account

7.2. Focus on Capital Flows

7.2.1. Implications of Capital Mobility

7.2.2. Uncovered Interest Rate Parity and Hot Money Flows

7.2.3. Portfolio Balance, Portfolio Composition, and Sustainability Issues

8. Forecasting Volatility

8.1. Estimating a Constant VCV Matrix with Sample Statistics

8.2. VCV Matrices from Multi-Factor Models

8.3. Shrinkage Estimation of VCV Matrices

8.4. Estimating Volatility from Smoothed Returns

8.5. Time-Varying Volatility: ARCH Models

9. Adjusting a Global Portfolio

9.1. Macro-Based Recommendations

9.1.1. Trend Growth

9.1.2. Global Integration

9.1.3. Phases of the Business Cycle

9.1.4. Monetary and Fiscal Policies

9.1.5. Current Account Balances

9.1.6. Capital Accounts and Currencies

9.2. Quantifying the Views

10. Summary

References

Practice Problems

Solutions

Overview of Asset Allocation

Learning Outcomes

1. Introduction

1.1. Asset Allocation: Importance in Investment Management

2. Investment Governance Background

2.1. Governance Structures

2.2. Articulating Investment Objectives

2.3. Allocation of Rights and Responsibilities

2.4. Investment Policy Statement

2.5. Asset Allocation and Rebalancing Policy

2.6. Reporting Framework

2.7. The Governance Audit

3. The Economic Balance Sheet and Asset Allocation

4. Approaches to Asset Allocation

4.1. Relevant Objectives

4.2. Relevant Risk Concepts

5. Modeling Asset Class Risk

6. Strategic Asset Allocation

7. Strategic Asset Allocation: Asset Only

8. Strategic Asset Allocation: Liability Relative

9. Strategic Asset Allocation: Goals Based

10. Implementation Choices

10.1. Passive/Active Management of Asset Class Weights

10.2. Passive/Active Management of Allocations to Asset Classes

10.3. Risk Budgeting Perspectives in Asset Allocation and Implementation

11. Rebalancing: Strategic Considerations

11.1. A Framework for Rebalancing

11.2. Strategic Considerations in Rebalancing

12. Summary

References

Practice Problems

Solutions

Principles of Asset Allocation

Learning Outcomes

1. Introduction

2. Asset-Only Asset Allocations and Mean–Variance Optimization

2.1. Mean–Variance Optimization: Overview

3. Monte Carlo Simulation

4. Criticisms of Mean–Variance Optimization

5. Addressing the Criticisms of Mean–Variance Optimization

5.1. Reverse Optimization

5.2. Black–Litterman Model

6. Adding Constraints beyond Budget Constraints, Resampled MVO and Other Non-Normal Optimization Approaches

6.1. Resampled Mean–Variance Optimization

6.2. Other Non-Normal Optimization Approaches

7. Allocating to Less Liquid Asset Classes

8. Risk Budgeting

9. Factor-Based Asset Allocation

10. Developing Liability-Relative Asset Allocations and Characterizing the Liabilities

10.1. Characterizing the Liabilities

11. Approaches to Liability-Relative Asset Allocation: Surplus Optimization

11.1. Surplus Optimization

12. Approaches to Liability-Relative Asset Allocation

12.1. Hedging/Return-Seeking Portfolio Approach

12.1.1. Forming the Hedging Portfolio

12.1.2. Limitations

12.2. Integrated Asset–Liability Approach

12.3. Comparing the Approaches

13. Examining the Robustness of Asset Allocation Alternatives

14. Factor Modeling in Liability-Relative Approaches

15. Developing Goals-Based Asset Allocations

15.1. The Goals-Based Asset Allocation Process

15.2. Describing Client Goals

16. Constructing Sub-Portfolios and the Overall Portfolio

16.1. The Overall Portfolio

17. Revisiting the Module Process in Detail

18. Issues Related to Goals-Based Asset Allocation

18.1. Issues Related to Goals-Based Asset Allocation

19. Heuristics and Other Approaches to Asset Allocation

19.1. The “120 Minus Your Age” Rule

19.2. The 60/40 Stock/Bond Heuristic

19.3. The Endowment Model

19.4. Risk Parity

19.5. The 1/N Rule

20. Portfolio Rebalancing in Practice

21. Summary

References

Practice Problems

Solutions

Asset Allocation with Real-World Constraints

Learning Outcomes

1. Introduction

2. Constraints in Asset Allocation and Asset Size

2.1. Asset Size

3. Liquidity

4. Time Horizon

4.1. Changing Human Capital

4.2. Changing Character of Liabilities

5. Regulatory and Other External Constraints

5.1. Insurance Companies

5.2. Pension Funds

5.3. Endowments and Foundations

5.4. Sovereign Wealth Funds

6. Asset Allocation for the Taxable Investor and After-Tax Portfolio Optimization

6.1. After-Tax Portfolio Optimization

7. Taxes and Portfolio Rebalancing

7.1. Strategies to Reduce Tax Impact

8. Revising the Strategic Asset Allocation

8.1. Goals

8.2. Constraints

8.3. Beliefs

9. Short-Term Shifts in Asset Allocation

9.1. Discretionary TAA

9.2. Systematic TAA

10. Dealing with Behavioral Biases in Asset Allocation

10.1. Loss Aversion

10.2. Illusion of Control

10.3. Mental Accounting

10.4. Representativeness Bias

10.5. Framing Bias

10.6. Availability Bias

11. Summary

References

Practice Problems

Solutions

Glossary

A

B

C

D

E

G

H

I

L

M

N

P

R

S

T

V

2026 CFA Program Level III - Core Volume 2: Portfolio Construction

Title Page

Accessibility Page

Table of Contents

How to Use the CFA Program Curriculum

CFA Institute Learning Ecosystem (LES)

Designing Your Personal Study Program

Errata

Other Feedback

Portfolio Construction

Overview of Equity Portfolio Management

Learning Outcomes

1. Introduction

2. The Roles of Equities in a Portfolio

2.1. Capital Appreciation

2.2. Dividend Income

2.3. Diversification with Other Asset Classes

2.4. Hedge against Inflation

2.5. Client Considerations for Equities in a Portfolio

3. Equity Investment Universe

3.1. Segmentation by Size and Style

3.2. Segmentation by Geography

3.3. Segmentation by Economic Activity

3.4. Segmentation of Equity Indexes and Benchmarks

4. Income Associated with Owning and Managing an Equity Portfolio

4.1. Dividend Income

4.2. Securities Lending Income

4.3. Ancillary Investment Strategies

5. Costs Associated with Owning and Managing an Equity Portfolio

5.1. Management Fees

5.2. Performance Fees

5.3. Administration Fees

5.4. Marketing and Distribution Costs

5.5. Trading Costs

5.6. Investment Approaches and Effects on Costs

6. Shareholder Engagement

6.1. Benefits of Shareholder Engagement

6.2. Disadvantages of Shareholder Engagement

6.3. The Role of an Equity Manager in Shareholder Engagement

6.3.1. Activist Investing

6.3.2. Voting

7. Equity Investment across the Active Management Spectrum

7.1. Confidence to Outperform

7.2. Client Preference

7.3. Suitable Benchmark

7.4. Client-Specific Mandates

7.5. Risks/Costs of Active Management

7.6. Taxes

7.7. Advantages of Index-Based Equity Strategies

8. Benchmark Selection

8.1. Indexes for Index-Based Strategies

8.2. Considerations When Choosing a Benchmark Index

8.3. Index Construction Methodologies

9. Summary

References

Practice Problems

Solutions

Overview of Fixed-Income Portfolio Management

Learning Outcomes

1. Introduction

2. Roles of Fixed-Income Securities in Portfolios

2.1. Diversification Benefits

2.2. Benefits of Regular Cash Flows

2.3. Inflation-Hedging Potential

2.4. Classifying Fixed-Income Mandates

2.5. Liability-Based Mandates

2.6. Total Return Mandates

2.7. Fixed-Income Mandates with ESG Considerations

3. Fixed-Income Portfolio Measures

3.1. Portfolio Measures of Risk and Return

3.2. Correlations between Fixed-Income Sectors

3.3. Use of Measures of Risk and Return in Portfolio Management

3.3.1. Portfolio Duration in Total Return Mandates

3.3.2. Managing Credit Exposure Using Spread Duration

3.3.3. Relative Value Concept

4. Bond Market Liquidity

4.1. Liquidity among Bond Market Sub-Sectors

4.2. The Effects of Liquidity on Fixed-Income Portfolio Management

4.2.1. Pricing

4.2.2. Portfolio Construction

4.2.3. Alternatives to Direct Investment in Bonds

5. A Model for Fixed-Income Returns

5.1. Decomposing Expected Returns

5.1.1. Coupon Income

5.1.2. Rolldown Return

5.1.3. Views of Benchmark Yields

5.1.4. Views of Yield Spreads

5.1.5. Views of Currency Value Changes

5.2. Estimation of the Inputs

5.3. Limitations of the Expected Return Decomposition

6. Leverage

6.1. Using Leverage

6.2. Methods for Leveraging Fixed-Income Portfolios

6.2.1. Futures Contracts

6.2.2. Swap Agreements

6.2.3. Repurchase Agreements

6.2.4. Security Lending

6.3. Risks of Leverage

7. Fixed-Income Portfolio Taxation

7.1. Principles of Fixed-Income Taxation

7.2. Investment Vehicles and Taxes

8. Liability-Driven Investing 

8.1. Liability-Driven Investing vs. Asset-Driven Liabilities 

8.2. Types of Liabilities 

9. Managing the Interest Rate Risk of Multiple Liabilities 

9.1. Cash Flow Matching 

10. Laddered Portfolios 

10.1. Benefits of Using Laddered Portfolios 

10.2. Using ETFs to Build Laddered Portfolios 

11. Summary

References

Practice Problems

Solutions

Asset Allocation to Alternative Investments

Learning Outcomes

1. Introduction

1.1. The Role of Alternative Investments in a Multi-Asset Portfolio

1.1.1. The Role of Private Equity in a Multi-Asset Portfolio

1.1.2. The Role of Hedge Funds in a Multi-Asset Portfolio

1.1.3. The Role of Real Assets in a Multi-Asset Portfolio

1.1.4. The Role of Commercial Real Estate in a Multi-Asset Portfolio

1.1.5. The Role of Private Credit in a Multi-Asset Portfolio

2. Diversifying Equity Risk

2.1. Volatility Reduction over the Short Time Horizon

2.2. Risk of Not Meeting the Investment Goals over the Long Time Horizon

3. Traditional Approaches to Asset Classification

3.1. Traditional Approaches to Asset Classification

3.1.1. A Liquidity-Based Approach to Defining the Opportunity Set

3.1.2. An Approach Based on Expected Performance under Distinct Macroeconomic Regimes

4. Risk-Based Approaches to Asset Classification

4.1. Illustration: Asset Allocation and Risk-Based Approaches

4.1.1. Portfolio A.

4.1.2. Portfolio B.

4.2. Comparing Risk-Based and Traditional Approaches

5. Risk Considerations, Return Expectations, and Investment Vehicle

5.1. Risk Considerations

5.1.1. Short-only strategy:

5.1.2. Option payouts:

5.2. Return Expectations

5.3. Investment Vehicle

5.3.1. Direct investment in a limited partnership:

5.3.2. Funds of funds (FOFs):

5.3.3. SMAs/funds of one:

5.3.4. Mutual funds/UCITS/publicly traded funds:

6. Liquidity

6.1. Liquidity Risks Associated with the Investment Vehicle

6.1.1. Secondary markets:

6.1.2. Understanding a drawdown structure:

6.2. Liquidity Risks Associated with the Underlying Investments

6.2.1. Equity-oriented hedge funds:

6.2.2. Event-driven hedge funds:

6.2.3. Relative value hedge funds:

6.2.4. Leverage:

7. Fees and Expenses, Tax Considerations, and Other Considerations

7.1. Tax Considerations

7.2. Other Considerations

8. Suitability Considerations

8.1. Investment Horizon

8.2. Expertise

8.3. Governance

8.4. Transparency

9. Asset Allocation Approaches and Statistical Properties and Challenges

9.1. Statistical Properties and Challenges of Asset Returns

9.1.1. Stale Pricing and Unsmoothing

9.1.2. Skewness and Fat Tails

10. Monte Carlo Simulation

10.1. Simulating Skewed and Fat-Tailed Financial Variables

10.2. Simulation for Long-Term Horizon Risk Assessment

11. Portfolio Optimization

11.1. Mean–Variance Optimization without and with Constraints

11.2. Mean–CVaR Optimization

12. Risk Factor-Based Optimization

13. Liquidity Planning

13.1. Achieving and Maintaining the Strategic Asset Allocation

14. Preparing for the Unexpected

14.1. Preparing for the Unexpected

15. Monitoring the Investment Program

15.1. Overall Investment Program Monitoring

15.2. Performance Evaluation

15.3. Monitoring the Firm and the Investment Process

16. Summary

References

Practice Problems

Solutions

An Overview of Private Wealth Management

Learning Outcomes

1. Introduction

2. Wealth in a Global Context

2.1. Defining Wealth

2.2. Sources of Global Wealth

2.3. Distribution of Global Wealth

3. Life-Cycle View of Human Capital

3.1. The Wealth Life Cycle

3.2. The Economic Value of the Individual

4. Individual Investors: Return, Risk, and Other Objectives and Constraints

4.1. Nominal and Inflation-Adjusted Returns

4.2. Risks

4.3. Objectives

5. The Impact of Taxation and Inflation

5.1. Taxes on Investment Income

5.2. The Impact of Accrual Taxes on Investment Returns

5.3. The Impact of Deferral of Taxes on Investment Returns

5.4. The Impact of Basis on Capital Gains

5.5. Inflation

5.6. The Impact of Different Sources of Returns with Taxes

5.7. Comparing Nominal and After-Tax Nominal with Real and After-Tax Real Returns

6. Individual Investors and Investment Policy Statements

6.1. Parts of an IPS

6.1.1. Background

6.1.2. Investment objectives

6.1.3. Investment parameters

6.1.4. Portfolio management

6.1.5. Duties and responsibilities

6.1.6. IPS appendix

6.2. Sample Investment Policy Statement

Practice Problems

Solutions

Portfolio Management for Institutional Investors

Learning Outcomes

1. Institutional Investors: Types and Common Characteristics

1.1. Institutional Investors: Common Characteristics

1.1.1. Scale

1.1.2. Long-Term Investment Horizon

1.1.3. Regulatory Frameworks

1.1.4. Governance Framework

1.1.5. Principal–Agent Issues

2. Overview of Investment Policy

3. Pension Funds: Types and Stakeholders

3.1. Stakeholders

3.1.1. Defined Benefit Pension Plans

3.1.2. Defined Contribution Pension Plans

4. Pension Funds: Liabilities, Investment Horizon, and Liquidity Needs

4.1. Liabilities and Investment Horizon

4.1.1. Defined Benefit Pension Plans

4.1.2. Defined Contribution Pension Plans

4.2. Liquidity Needs

5. Pension Funds: External Constraints

5.1. Legal and Regulatory Constraints

5.2. Tax and Accounting Constraints

6. Pension Funds: Risk Considerations

7. Pension Funds: Investment Objectives and Asset Allocation

7.1. Investment Objectives

7.1.1. Defined Benefit Pension Plans

7.1.2. Defined Contribution Pension Plans

7.2. Asset Allocation by Pension Plans

8. Sovereign Wealth Funds: Types and Stakeholders

8.1. Stakeholders

9. Sovereign Wealth Funds: Other Considerations

9.1. Liabilities and Investment Horizons

9.1.1. Budget Stabilization Funds

9.1.2. Development Funds

9.1.3. Savings Funds

9.1.4. Reserve Funds

9.1.5. Pension Reserve Funds

9.2. Liquidity Needs

9.2.1. Budget Stabilization Funds

9.2.2. Development Funds

9.2.3. Savings Funds

9.2.4. Reserve Funds

9.2.5. Pension Reserve Funds

9.3. External Constraints Affecting Investment

9.3.1. Legal and Regulatory Constraints

9.3.2. Tax and Accounting Constraints

10. Sovereign Wealth Funds: Investment Objectives and Asset Allocation

10.1. Investment Objectives

10.1.1. Budget Stabilization Funds

10.1.2. Development Funds

10.1.3. Savings Funds

10.1.4. Reserve Funds

10.1.5. Pension Reserve Funds

10.2. Asset Allocation by Sovereign Wealth Funds

11. University Endowments and Private Foundations

11.1. University Endowments

11.2. Private Foundations

11.3. External Constraints Affecting Investment

11.3.1. Legal and Regulatory Constraints

11.3.2. Tax and Accounting Constraints

12. University Endowments: Other Considerations

12.1. University Endowments—Liabilities and Investment Horizon

12.2. University Endowments—Liquidity Needs

13. Private Foundations

13.1. Private Foundations—Liabilities and Investment Horizon

13.2. Private Foundations—Liquidity Needs

14. University Endowments: Investment Objectives and Asset Allocation

14.1. University Endowments

14.2. Asset Allocation

14.2.1. University Endowments

15. Private Foundations: Investment Objectives and Asset Allocation

15.1. Private Foundations

16. Banks and Insurers

16.1. Banks

16.2. Insurers

16.3. External Constraints Affecting Investment

16.3.1. Legal and Regulatory Constraints

16.3.2. Accounting and Tax Considerations

17. Banks: Other Considerations

17.1. Banks—Liabilities and Investment Horizon

17.2. Banks—Liquidity Needs

18. Insurers

18.1. Insurers—Liabilities and Investment Horizon

18.1.1. Life Insurers

18.1.2. Property & Casualty Insurers

18.2. Insurers—Liquidity Needs

19. Banks and Insurers: Investment Objectives

19.1. Banks

19.2. Insurers

20. Banks and Insurers: Balance Sheet Management and Investment Considerations

21. Banks and Insurers: Investment Strategies and Asset and Liability Volatility

22. Banks and Insurers: Implementation of Portfolio Decisions

23. Summary

References

Practice Problems

Solutions

Trading Costs and Electronic Markets

Learning Outcomes

1. Costs of Trading

1.1. Costs of Trading

1.1.1. Dealer Quotes

1.1.2. Bid–Ask Spreads and Order Books

1.1.3. Implicit Transaction Cost Estimates

2. Effective Spreads and Volume-Weighted Cost Estimates

2.1. Implementation Shortfall

2.2. VWAP Transaction Cost Estimates

3. Development of Electronic Markets

3.1. Electronic Trading

3.2. Advantages of Electronic Trading Systems

3.3. Electronification of Bond Markets

3.4. Market Fragmentation

3.5. Effects on Transaction Costs

4. Types of Electronic Traders

4.1. The Major Types of Electronic Traders

5. Electronic Trading System: Characteristics and Uses

5.1. Why Speed Matters

5.2. Fast Communications

5.3. Fast Computations

5.4. Advanced Orders, Tactics, and Algorithms

5.4.1. Advanced order types.

5.4.2. Trading tactics.

5.4.3. Algorithms.

5.5. Select Examples of How Electronic Trading Changed Trading Strategies

5.5.1. Hidden orders.

5.5.2. Leapfrog.

5.5.3. Flickering quotes.

5.5.4. Electronic arbitrage.

5.5.5. Machine learning.

6. Electronic Trading Risks

6.1. The HFT Arms Race

6.2. Systemic Risks of Electronic Trading

7. Detecting Abusive Trading Practices

7.1. Front running.

7.2. Market manipulation.

8. Summary

Practice Problems

Solutions

Case Study in Portfolio Management: Institutional (SWF)

Learning Outcomes

1. Introduction

2. Financial Risks Faced by Institutional Investors

2.1. Long-Term Perspective

2.2. Dimensions of Financial Risk Management

2.2.1. Top-down vs. bottom-up risk analysis

2.2.2. Portfolio-level risk vs. asset-class-specific risk

2.2.3. Return-based vs. holdings-based risk approaches

2.2.4. Absolute vs. relative risk

2.2.5. Long-term vs. short-term risk metrics

2.2.6. Quantitative vs. qualitative risks

2.2.7. Pre- and post-investment risk assessment

2.3. Risk Considerations for Long-Term Investors

2.4. Risks Associated with Illiquid Asset Classes

2.4.1. Cash flow modeling

2.4.2. Addressing return smoothing behavior of illiquid asset classes

2.4.3. Direct vs. fund investments in illiquid asset classes

2.5. Managing Liquidity Risk

2.6. Enterprise Risk Management for Institutional Investors

3. Environmental and Social Risks Faced by Institutional Investors

3.1. Universal Ownership, Externalities, and Responsible Investing

3.2. Material Environmental Issues for an Institutional Investor

3.2.1. Physical climate risks

3.2.2. Impact on real assets

3.2.3. Climate transition risks

3.2.4. Climate opportunities

3.2.4.1. Climate mitigation

3.2.4.2. Climate adaptation

3.3. Material Social Issues for an Institutional Investor

3.3.1. Managing community relations and the social license to operate

3.3.2. Labor issues in the supply chain

3.3.3. The “just” transition

4. Case Study

4.1. Case Study: Introduction

4.2. Case Study: Background

4.3. R-SWF’S Investments: 1.0

4.3.1. Initial Case Facts (1.0)

4.4. Investment Committee Meeting 1.0

4.4.1. Participants

4.4.1.1. Chief Investment Officer:

4.4.2. Infrastructure Investment Discussion

4.4.2.1. Head of Infrastructure:

4.4.2.2. Chief Investment Officer:

4.4.2.3. Head of Infrastructure:

4.4.2.4. Chief Investment Officer:

4.4.3. Private Equity Investment Discussion

4.4.3.1. Head of PE:

4.4.3.2. Chief Investment Officer:

4.4.3.3. Head of PE:

4.4.3.4. Chief Investment Officer:

4.4.3.5. Head of Risk:

4.4.3.6. Head of PE:

4.4.3.7. Chief Investment Officer:

4.4.3.8. Head of Risk:

4.4.3.9. Head of PE:

4.4.3.10. Chief Investment Officer:

4.4.3.11. Head of Equities:

4.4.3.12. Head of PE:

4.4.3.13. Chief Investment Officer:

4.4.3.14. Head of Risk:

4.4.3.15. Chief Investment Officer:

4.4.3.16. Head of Equities:

4.4.3.17. Head of PE:

4.4.3.18. Chief Investment Officer:

4.4.3.19. Head of PE:

4.4.3.20. Head of Equities:

4.4.3.21. Chief Investment Officer:

4.4.3.22. Head of Risk:

4.4.3.23. Head of PE:

4.4.3.24. Head of Equities:

4.4.3.25. Chief Investment Officer:

4.4.3.26. Head of PE:

4.4.4. General Discussion on Risk

4.4.4.1. Chief Investment Officer:

4.4.4.2. Head of Risk:

4.4.4.3. Head of PE:

4.4.4.4. Head of Infrastructure:

4.4.4.5. Head of Risk:

4.4.4.6. Head of Infrastructure:

4.4.4.7. Head of Risk:

4.4.4.8. Head of Infrastructure:

4.4.4.9. Head of Risk:

4.4.4.10. Head of Equities:

4.4.4.11. Head of Infrastructure

4.4.4.12. Head of Risk:

4.4.4.13. Head of Infrastructure:

4.4.4.14. Chief Investment Officer:

4.4.4.15. Head of Infrastructure:

4.4.4.16. Head of PE:

4.4.4.17. Head of Risk:

4.4.4.18. Head of PE:

4.4.4.19. Head of Infrastructure:

4.4.4.20. Chief Investment Officer:

4.4.4.21. Head of Risk:

4.4.4.22. Head of Infrastructure:

4.4.4.23. Head of PE:

4.4.4.24. Head of Equities:

4.4.4.25. Head of Infrastructure:

4.4.4.26. Head of PE:

4.4.4.27. Chief Investment Officer

4.4.4.28. Head of Risk:

4.4.4.29. Head of Equities:

4.4.4.30. Head of Risk:

4.4.4.31. Head of Infrastructure:

4.4.5. Voting on Infrastructure Investment

4.4.5.1. Chief Investment Officer:

4.4.5.2. Head of Infrastructure:

4.4.5.3. Chief Investment Officer:

4.4.5.4. Head of Risk:

4.4.5.5. Chief Investment Officer:

4.4.5.6. Head of PE:

4.4.5.7. Chief Investment Officer:

4.4.5.8. Head of Equities:

4.4.5.9. Chief Investment Officer:

4.4.6. Voting on Private Equity Investment

4.4.6.1. Chief Investment Officer:

4.4.6.2. Head of PE:

4.4.6.3. Chief Investment Officer:

4.4.6.4. Head of Equities:

4.4.6.5. Chief Investment Officer:

4.4.6.6. Head of Infrastructure:

4.4.6.7. Chief Investment Officer:

4.4.6.8. Head of Risk:

4.4.6.9. Chief Investment Officer:

4.4.6.10. Head of PE:

4.4.6.11. Head of Risk:

4.4.6.12. Head of PE:

4.4.6.13. Chief Investment Officer:

4.4.7. —The End—

4.5. R-SWF’S Investments: 2.0

4.5.1. Extension of Case Facts (2.0)

4.6. Investment Committee Meeting 2.0

4.6.1. Participants

4.6.1.1. Chief Investment Officer:

4.6.1.2. Head of Infrastructure:

4.6.1.3. Chief Investment Officer:

4.6.1.4. Head of PE:

4.6.1.5. Chief Investment Officer:

4.6.1.6. Head of PE:

4.6.1.7. Head of Risk:

4.6.1.8. Head of PE:

4.6.1.9. Head of Risk:

4.6.1.10. Head of PE:

4.6.1.11. Chief Investment Officer:

4.6.1.12. Head of PE:

4.6.1.13. Head of Risk:

4.6.1.14. Chief Investment Officer:

4.6.1.15. Head of PE:

4.6.1.16. Chief Investment Officer:

4.6.1.17. Head of Risk:

4.6.1.18. Head of Infrastructure:

4.6.1.19. Head of Equities:

4.6.1.20. Head of Infrastructure:

4.6.1.21. Chief Investment Officer:

4.6.1.22. Head of PE:

4.6.1.23. Head of Infrastructure:

4.6.1.24. Chief Investment Officer:

4.6.1.25. Head of Risk:

4.6.1.26. Chief Investment Officer:

4.6.1.27. Head of Risk:

4.6.1.28. Head of Infrastructure:

4.6.1.29. Head of Risk:

4.6.1.30. Head of PE:

4.6.1.31. Head of Equities:

4.6.1.32. Head of PE:

4.6.1.33. Chief Investment Officer:

4.6.1.34. Head of Equities:

4.6.1.35. Chief Investment Officer:

4.6.1.36. Head of Infrastructure:

4.6.1.37. Chief Investment Officer:

4.6.1.38. Head of Risk:

4.6.1.39. Chief Investment Officer:

4.6.1.40. Head of Equities:

4.6.1.41. Chief Investment Officer:

4.6.2. —The End—

4.7. R-SWF’S Investments: 3.0

4.7.1. Second Extension of Case Facts (3.0)

4.7.1.1. Update on Infrastructure Investment

4.7.1.2. Update on PE Investment

References

Glossary

A

B

C

D

E

F

G

H

I

L

M

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2026 CFA Program Level III - Core Volume 3: Performance Measurement

Title Page

Accessibility Page

Table of Contents

How to Use the CFA Program Curriculum

CFA Institute Learning Ecosystem (LES)

Designing Your Personal Study Program

Errata

Other Feedback

Performance Measurement

Portfolio Performance Evaluation

Learning Outcomes

1. Introduction

2. Performance Evaluation and Attribution

2.1. Performance Attribution

3. Return Attribution

3.1. A Simple Return Attribution Example

3.2. Equity Return Attribution—The Brinson–Hood–Beebower Model

3.3. Brinson–Fachler Model

4. Factor-Based and Fixed-Income Return Attribution

4.1. Fixed-Income Return Attribution

4.1.1. Exposure Decomposition—Duration Based

4.1.2. Yield Curve Decomposition—Duration Based

4.1.3. Yield Curve Decomposition—Full Repricing

4.1.4. Fixed-Income Attribution—Worked Example

5. Risk Attribution

6. Return Attribution Analysis at Multiple Levels

6.1. Macro Attribution—An Example

6.2. Micro Attribution—An Example

7. Asset- and Liability-Based Benchmarks

7.1. Asset-Based Benchmarks

8. Benchmark Selection

8.1. Evaluating Benchmark Quality: Analysis Based on a Decomposition of Portfolio Holdings and Returns

8.2. Importance of Choosing the Correct Benchmark

9. Benchmarking Alternative Investments

9.1. Benchmarking Hedge Fund Investments

9.2. Benchmarking Real Estate Investments

9.3. Benchmarking Private Equity

9.4. Benchmarking Commodity Investments

9.5. Benchmarking Managed Derivatives

9.6. Benchmarking Distressed Securities

10. Performance Appraisal: Risk-Based Measures

10.1. Distinguishing Investment Skill from Luck

10.2. Appraisal Measures

10.2.1. The Sharpe Ratio

10.2.2. The Treynor Ratio

10.2.3. The Information Ratio

10.2.4. The Appraisal Ratio

10.2.5. The Sortino Ratio

11. Performance Appraisal: Capture Ratios and Drawdowns

11.1. Capture Ratios

11.2. Drawdown

12. Evaluation of Investment Manager Skill

12.1. Performance Attribution Analysis

12.2. Appraisal Measures

12.3. Sample Evaluation of Skill

13. Summary

References

Practice Problems

Solutions

Investment Manager Selection

Learning Outcomes

1. Introduction

2. A Framework for Investment Manager Search and Selection

2.1. Defining the Manager Universe

3. Type I and Type II Errors in Manager Selection

3.1. Qualitative Considerations in Type I and Type II Errors

3.2. Performance Implications of Type I and Type II Errors

4. Quantitative Elements of Manager Search and Selection

4.1. Style Analysis

5. Capture Ratios and Drawdowns in Manager Evaluation

6. The Manager’s Investment Philosophy

6.1. Investment Philosophy

6.2. Investment Personnel

6.3. Behavioral Biases among Investment Teams

7. The Manager’s Investment Decision-Making Process

7.1. Signal Creation (Idea Generation)

7.2. Signal Capture (Idea Implementation)

7.3. Portfolio Construction

7.4. Monitoring the Portfolio

8. Operational Due Diligence

8.1. Firm

8.2. Investment Vehicle

8.3. Separately Managed Accounts

8.4. Evaluation of the Investment’s Terms

8.4.1. Liquidity

9. Management Fees

9.1. Assets under Management Fees

9.2. Performance-Based Fees

10. Summary

References

Practice Problems

Solutions

Overview of the Global Investment Performance Standards

Learning Outcomes

1. Objective and Scope of the GIPS Standards

1.1. Objective and Scope of the GIPS Standards

1.1.1. The Need for Global Investment Performance Standards

1.1.2. The Scope of the GIPS Standards for Firms

1.1.3. Overview of the GIPS Standards

2. Fundamentals of Compliance

2.1. Definition of the Firm

2.2. Definition of Discretion

2.3. Other Fundamentals of Compliance

3. Time-Weighted Return

3.1. Time-Weighted Return

4. Miscellaneous Return Calculation Topics

4.1. Annualizing Returns

4.2. Treatment of Cash Equivalents

4.3. Treatment of Expenses and Fees

4.4. Valuation Requirements

5. Composite Time-Weighted Return Calculations

5.1. Composite Time-Weighted Return Calculations

6. Composites: Qualifying Portfolios and Defining Investment Strategies

6.1. Composites—Defining Investment Strategies

7. Composites: Including and Excluding Portfolios

8. Presentation and Reporting Requirements for Composites

8.1. Minimum Years of Performance

8.2. Required Elements of a GIPS Composite Report

8.2.1. Dispersion Measures

8.3. Portability

8.4. Sample Reports

9. Verification

9.1. Scope of Verification

9.2. Verification Process

10. Summary

Practice Problems

Solutions

Glossary

A

C

D

E

F

G

H

I

K

M

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R

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2026 CFA Program Level III - Core Volume 4: Derivatives and Risk Management

Title Page

Accessibility Page

Table of Contents

How to Use the CFA Program Curriculum

CFA Institute Learning Ecosystem (LES)

Designing Your Personal Study Program

Errata

Other Feedback

Derivatives and Risk Management

Options Strategies

Learning Outcomes

1. Introduction

2. Position Equivalencies

2.1. Synthetic Forward Position

2.2. Synthetic Put and Call

3. Covered Calls and Protective Puts

3.1. Investment Objectives of Covered Calls

3.1.1. Market Participant #1: Yield Enhancement

3.1.2. Market Participant #2: Reducing a Position at a Favorable Price

3.1.3. Market Participant #3: Target Price Realization

3.1.4. Profit and Loss at Expiration

4. Investment Objectives of Protective Puts

4.1. Loss Protection/Upside Preservation

4.2. Profit and Loss at Expiration

5. Equivalence to Long Asset/Short Forward Position

5.1. Writing Puts

6. Risk Reduction Using Covered Calls and Protective Puts

6.1. Covered Calls

6.2. Protective Puts

6.3. Buying Calls and Writing Puts on a Short Position

7. Spreads and Combinations

7.1. Bull Spreads and Bear Spreads

7.1.1. Bull Spread

7.1.2. Bear Spread

7.1.3. Refining Spreads

7.1.3.1. Adding a Short Leg to a Long Position

7.1.3.2. Spreads and Delta

8. Straddle

8.1. Collars

8.1.1. Collars on an Existing Holding

8.1.2. The Risk of a Collar

8.1.3. The Risk of Spreads

8.2. Calendar Spread

9. Implied Volatility and Volatility Skew

10. Investment Objectives and Strategy Selection

10.1. The Necessity of Setting an Objective

10.2. Criteria for Identifying Appropriate Option Strategies

11. Options in Portfolio Management

11.1. Covered Call Writing

11.1.1. Solution:

11.2. Put Writing

11.2.1. Solution:

11.2.1.1. Scenario A:

11.2.1.2. Scenario B:

11.3. Long Straddle

11.3.1. Solution:

11.4. Collar

11.4.1. Solution:

11.5. Calendar Spread

11.5.1. Solution to 1:

11.5.2. Solution to 2:

11.5.2.1. Scenario 1:

11.5.2.2. Scenario 2:

11.5.2.3. Scenario 3:

11.5.2.4. Scenario 4:

12. Hedging an Expected Increase in Equity Market Volatility

12.1. Establishing or Modifying Equity Risk Exposure

12.1.1. Long Call

12.1.2. Risk Management: Protective Put Position

12.1.2.1. Situation A: Before Relais Corporation’s quarterly earnings release:

12.1.2.1.1. Solution:

12.1.2.2. Situation B: One week later, just after Relais Corporation’s earnings release:

12.1.2.2.1. Solution:

13. Summary

Practice Problems

Solutions

Swaps, Forwards, and Futures Strategies

Learning Outcomes

1. Managing Interest Rate Risk with Swaps

1.1. Changing Risk Exposures with Swaps, Futures, and Forwards

1.1.1. Managing Interest Rate Risk

1.1.1.1. Interest Rate Swaps

2. Managing Interest Rate Risk with Forwards and Futures

2.1. Fixed-Income Futures

3. Managing Currency Exposure

3.1. Currency Swaps

3.2. Currency Forwards and Futures

4. Managing Equity Risk

4.1. Equity Swaps

4.2. Equity Forwards and Futures

4.3. Cash Equitization

5. Volatility Derivatives: Futures and Options

5.1. Volatility Futures and Options

6. Volatility Derivatives: Variance Swaps

7. Using Derivatives in Asset Allocation, Part 1

7.1. Solution:

7.1.1. Scenario A:

7.1.2. Scenario B:

7.2. Cash Equitization

7.2.1. Scenario: Three months later, the FTSE 100 Index has increased by 5%.

8. Using Derivatives in Asset Allocation, Part 2

8.1. Changing Allocations between Asset Classes Using Futures

8.1.1. Solution to 1:

8.1.2. Solution to 2:

8.1.3. Solution to 3:

8.2. Rebalancing an Asset Allocation Using Futures

8.2.1. Solution:

8.3. Changing Allocations between Asset Classes Using Swaps

8.3.1. Solution:

9. Using Derivatives to Infer Market Expectations

9.1. Using Fed Funds Futures to Infer the Expected Average Federal Funds Rate

9.2. Inferring Market Expectations

9.2.1. Solution to 1:

9.2.2. Solution to 2:

10. Summary

Practice Problems

Solutions

Currency Management: An Introduction

Learning Outcomes

1. Introduction

2. Foreign Exchange Concepts

2.1. Spot Markets

2.2. Forward Markets

2.3. FX Swap Markets

2.4. Currency Options

3. Currency Risk and Portfolio Risk and Return

3.1. Return Decomposition

3.2. Volatility Decomposition

4. Strategic Decisions in Currency Management

4.1. The Investment Policy Statement

4.2. The Portfolio Optimization Problem

4.3. Choice of Currency Exposures

4.3.1. Diversification Considerations

4.3.2. Cost Considerations

5. Spectrum of Currency Risk Management Strategies

5.1. Passive Hedging

5.2. Discretionary Hedging

5.3. Active Currency Management

5.4. Currency Overlay

6. Formulating a Currency Management Program

7. Economic Fundamentals, Technical Analysis and the Carry Trade

7.1. Active Currency Management Based on Economic Fundamentals

7.2. Active Currency Management Based on Technical Analysis

7.3. Active Currency Management Based on the Carry Trade

8. Volatility Trading

9. Forward Contracts, FX Swaps, and Currency Options

9.1. Forward Contracts

9.1.1. Hedge Ratios with Forward Contracts

9.1.2. Roll Yield

9.2. Currency Options

10. Currency Management Strategies

10.1. Over-/Under-Hedging Using Forward Contracts

10.2. Protective Put Using OTM Options

10.3. Risk Reversal (or Collar)

10.4. Put Spread

10.5. Seagull Spread

10.6. Exotic Options

10.7. Section Summary

11. Hedging Multiple Foreign Currencies

11.1. Cross Hedges and Macro Hedges

11.2. Minimum-Variance Hedge Ratio

11.3. Basis Risk

12. Currency Management Tools and Strategies: A Summary

13. Currency Management for Emerging Market Currencies

13.1. Special Considerations in Managing Emerging Market Currency Exposures

13.2. Non-Deliverable Forwards

14. Summary

References

Practice Problems

Solutions

Glossary

B

C

D

E

F

G

H

I

K

M

N

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2026 CFA Program Level III - Core Volume 5: Ethical and Professional Standards

Title Page

Accessibility Page

Table of Contents

How to Use the CFA Program Curriculum

CFA Institute Learning Ecosystem (LES)

Designing Your Personal Study Program

Errata

Other Feedback

Ethical and Professional Standards

Code of Ethics and Standards of Professional Conduct

Learning Outcomes

1. Preface

1.1. Evolution of the CFA Institute Code of Ethics and Standards of Professional Conduct

1.2. Standards of Practice Handbook

1.3. Summary of the 2023 Revisions to the Code and Standards

1.4. New and Revised Standards of Professional Conduct

1.4.1. Competence Standard

1.4.2. Disclosure of Nature of Services and Costs to Client

1.4.3. Revised Standard Relating to Conflicts

1.5. CFA Institute Professional Conduct Program

1.6. Adoption of the Code and Standards

1.7. Acknowledgments

2. Ethics and the Investment Industry

2.1. Why Ethics Matters

2.1.1. Ethics, Society, and the Capital Markets

2.1.2. Capital Market Sustainability and the Actions of One

2.1.3. The Relationship between Ethics and Regulations

2.1.4. Applying an Ethical Framework

2.1.5. Commitment to Ethics by Firms

2.1.6. Ethical Commitment of CFA Institute

3. CFA Institute Code of Ethics and Standards of Professional Conduct

3.1. Preamble

3.2. The Code of Ethics

3.3. Standards of Professional Conduct

Practice Problems

Solutions

Guidance for Standards I–VII

Learning Outcomes

1. Standard I: Professionalism

1.1. Standard I(A) Knowledge of the Law

1.2. Guidance

1.2.1. Relationship between the Code and Standards and Applicable Law

1.2.2. Participation in or Association with Violations by Others

1.2.3. Investment Products and Applicable Laws

2. Standard I(A): Recommended Procedures

2.1. Members and Candidates

2.2. Distribution Area Laws

2.3. Legal Counsel

2.4. Dissociation

2.5. Firms

3. Standard I(A): Application of the Standard

3.1. Example 1 (Notification of Known Violations):

3.2. Example 2 (Dissociating from a Violation):

3.3. Example 3 (Dissociating from a Violation):

3.4. Example 4 (Following the Highest Requirements):

3.5. Example 5 (Following the Highest Requirements):

3.6. Example 6 (Laws and Regulations Based on Religious Tenets):

3.7. Example 7 (Reporting Potential Unethical Actions):

3.8. Example 8 (Failure to Maintain Knowledge of the Law):

4. Standard I(B) Independence and Objectivity

4.1. Guidance

4.1.1. Buy-Side Clients

4.1.2. Fund Manager and Custodial Relationships

4.1.3. Investment Banking Relationships

4.1.4. Performance Measurement and Attribution

4.1.5. Public Companies

4.1.6. Credit Rating Agency Opinions

4.1.7. Influence during the Manager Selection/Procurement Process

4.1.8. Issuer-Paid Research

4.1.9. Travel Funding

5. Standard I(B): Recommended Procedures

6. Standard I(B): Application of the Standard

6.1. Example 1 (Travel Expenses):

6.2. Example 2 (Research Independence):

6.3. Example 3 (Research Independence and Intrafirm Pressure):

6.4. Example 4 (Research Independence and Issuer Relationship Pressure):

6.5. Example 5 (Research Independence and Sales Pressure):

6.6. Example 6 (Research Independence and Prior Coverage):

6.7. Example 7 (Gifts and Entertainment from Related Party):

6.8. Example 8 (Gifts and Entertainment from Client):

6.9. Example 9 (Travel Expenses from External Manager):

6.10. Example 10 (Research Independence and Compensation Arrangements):

6.11. Example 11 (Recommendation Objectivity and Service Fees):

6.12. Example 12 (Recommendation Objectivity):

6.13. Example 13 (Influencing Manager Selection Decisions):

6.14. Example 14 (Influencing Manager Selection Decisions):

6.15. Example 15 (Fund Manager Relationships):

6.16. Example 16 (Intrafirm Pressure):

7. Standard I(C) Misrepresentation

7.1. Guidance

7.1.1. Impact on Investment Practice

7.1.2. Performance Reporting

7.1.3. Social Media

7.1.4. Omissions

7.1.5. Plagiarism

7.1.6. Work Completed for Employer

8. Standard I(C): Recommended Procedures

8.1. Factual Presentations

8.2. Qualification Summary

8.3. Verify Outside Information

8.4. Maintain Webpages

8.5. Plagiarism Policy

9. Standard I(C): Application of the Standard

9.1. Example 1 (Disclosure of Issuer-Paid Research):

9.2. Example 2 (Correction of Unintentional Errors):

9.3. Example 3 (Noncorrection of Known Errors):

9.4. Example 4 (Plagiarism):

9.5. Example 5 (Misrepresentation of Information):

9.6. Example 6 (Potential Information Misrepresentation):

9.7. Example 7 (Plagiarism):

9.8. Example 8 (Plagiarism):

9.9. Example 9 (Plagiarism):

9.10. Example 10 (Plagiarism):

9.11. Example 11 (Misrepresentation of Information):

9.12. Example 12 (Misrepresentation of Information):

9.13. Example 13 (Avoiding a Misrepresentation):

9.14. Example 14 (Misrepresenting Composite Construction):

9.15. Example 15 (Presenting Out-of-Date Information):

9.16. Example 16 (Overemphasis of Firm Results):

10. Standard I(D) Misconduct

10.1. Guidance

11. Standard I(D): Recommended Procedures

12. Standard I(D): Application of the Standard

12.1. Example 1 (Professionalism and Competence):

12.2. Example 2 (Fraud and Deceit):

12.3. Example 3 (Fraud and Deceit):

12.4. Example 4 (Personal Actions and Integrity):

12.5. Example 5 (Professional Misconduct):

13. Standard I(E) Competence

13.1. Guidance

14. Standard I(E): Recommended Procedures

15. Standard I(E): Application of the Standard

15.1. Example 1 (Maintaining Competence):

15.2. Example 2 (Improving Competence):

15.3. Example 3 (Change in Role):

15.4. Example 4 (Supervisory Responsibility):

15.5. Example 5 (Choosing Investments):

15.6. Example 6 (Understanding New Investment Products):

16. Standard II: Integrity of Capital Markets

16.1. Standard II(A) Material Nonpublic Information

16.2. Guidance

16.2.1. What Is “Material” Information?

16.2.2. What Constitutes “Nonpublic” Information?

16.2.3. Mosaic Theory

16.2.4. Social Media

16.2.5. Using Industry Experts

16.2.6. Investment Research Reports

17. Standard II(A): Recommended Procedures

17.1. Achieve Public Dissemination

17.2. Adopt Compliance Procedures

17.3. Adopt Disclosure Procedures

17.4. Issue Press Releases

17.5. Firewall Elements

17.5.1. Appropriate Interdepartmental Communications

17.5.2. Physical Separation of Departments

17.5.3. Prevention of Personnel Overlap

17.5.4. A Reporting System

17.6. Personal Trading Limitations

17.7. Record Maintenance

17.8. Proprietary Trading Procedures

17.9. Communication to All Employees

18. Standard II(A): Application of the Standard

18.1. Example 1 (Acting on Nonpublic Information):

18.2. Example 2 (Controlling Nonpublic Information):

18.3. Example 3 (Selective Disclosure of Material Information):

18.4. Example 4 (Determining Materiality):

18.5. Example 5 (Applying the Mosaic Theory):

18.6. Example 6 (Applying the Mosaic Theory):

18.7. Example 7 (Analyst Recommendations as Material Nonpublic Information):

18.8. Example 8 (Acting on Nonpublic Information):

18.9. Example 9 (Mosaic Theory):

18.10. Example 10 (Materiality Determination):

18.11. Example 11 (Using an Expert Network):

18.12. Example 12 (Using an Expert Network):

19. Standard II(B) Market Manipulation

19.1. Guidance

19.1.1. Information-Based Manipulation

19.1.2. Transaction-Based Manipulation

20. Standard II(B): Application of the Standard

20.1. Example 1 (Independent Analysis and Company Promotion):

20.2. Example 2 (Personal Trading Practices and Price):

20.3. Example 3 (Creating Artificial Price Volatility):

20.4. Example 4 (Personal Trading and Volume):

20.5. Example 5 (“Pump-Priming” Strategy):

20.6. Example 6 (Creating Artificial Price Volatility):

20.7. Example 7 (Pump and Dump Strategy):

20.8. Example 8 (Manipulating Model Inputs):

20.9. Example 9 (Information Manipulation):

21. Standard III: Duties to Clients

21.1. Standard III(A) Loyalty, Prudence, and Care

21.2. Guidance

21.2.1. Understanding the Application of Loyalty, Prudence, and Care

21.2.2. Identifying the Actual Investment Client

21.2.3. Developing the Client’s Portfolio

21.2.4. Soft Commission Policies

21.2.5. Proxy Voting Policies

22. Standard III(A): Recommended Procedures

22.1. Regular Account Information

22.2. Client Approval

22.3. Firm Policies

23. Standard III(A): Application of the Standard

23.1. Example 1 (Identifying the Client—Plan Participants):

23.2. Example 2 (Client Commission Practices):

23.3. Example 3 (Brokerage Arrangements):

23.4. Example 4 (Brokerage Arrangements):

23.5. Example 5 (Client Commission Practices):

23.6. Example 6 (Excessive Trading):

23.7. Example 7 (Managing Family Accounts):

23.8. Example 8 (Identifying the Client):

23.9. Example 9 (Identifying the Client):

23.10. Example 10 (Client Loyalty):

23.11. Example 11 (Execution-Only Responsibilities):

24. Standard III(B) Fair Dealing

24.1. Guidance

24.1.1. Investment Recommendations

24.1.2. Investment Action

25. Standard III(B): Recommended Procedures

25.1. Develop Firm Policies

25.2. Disclose Trade Allocation Procedures

25.3. Establish Systematic Account Review

25.4. Disclose Levels of Service

26. Standard III(B): Application of the Standard

26.1. Example 1 (Selective Disclosure):

26.2. Example 2 (Fair Dealing between Funds):

26.3. Example 3 (Fair Dealing and IPO Distribution):

26.4. Example 4 (Fair Dealing and Transaction Allocation):

26.5. Example 5 (Selective Disclosure):

26.6. Example 6 (Additional Services for Select Clients):

26.7. Example 7 (Minimum Lot Allocations):

26.8. Example 8 (Excessive Trading):

26.9. Example 9 (Limited Social Media Disclosures):

26.10. Example 10 (Fair Dealing between Clients):

27. Standard III(C) Suitability

27.1. Guidance

27.1.1. Developing an Investment Policy

27.1.2. Understanding the Client’s Risk Profile

27.1.3. Updating an Investment Policy

27.1.4. The Need for Diversification

27.1.5. Addressing Unsolicited Trading Requests

27.1.6. Managing to an Index or Mandate

28. Standard III(C): Recommended Procedures

28.1. Investment Policy Statement

28.2. Regular Updates

28.3. Suitability Test Policies

29. Standard III(C): Application of the Standard

29.1. Example 1 (Investment Suitability—Risk Profile):

29.2. Example 2 (Investment Suitability—Entire Portfolio):

29.3. Example 3 (IPS Updating):

29.4. Example 4 (Following an Investment Mandate):

29.5. Example 5 (IPS Requirements and Limitations):

29.6. Example 6 (Submanager and IPS Reviews):

29.7. Example 7 (Investment Suitability—Risk Profile):

29.8. Example 8 (Investment Suitability):

30. Standard III(D) Performance Presentation

30.1. Guidance

31. Standard III(D): Recommended Procedures

31.1. Apply the GIPS Standards

31.2. Compliance without Applying GIPS Standards

32. Standard III(D): Application of the Standard

32.1. Example 1 (Performance Calculation and Length of Time):

32.2. Example 2 (Performance Calculation and Asset Weighting):

32.3. Example 3 (Performance Presentation and Prior Fund/Employer):

32.4. Example 4 (Performance Presentation and Simulated Results):

32.5. Example 5 (Performance Calculation and Selected Accounts Only):

32.6. Example 6 (Performance Attribution Changes):

32.7. Example 7 (Performance Calculation Methodology Disclosure):

32.8. Example 8 (Performance Calculation Methodology Disclosure):

33. Standard III(E) Preservation of Confidentiality

33.1. Guidance

33.1.1. Status of Client

33.1.2. Compliance with Laws

33.1.3. Electronic Information and Security

33.1.4. Professional Conduct Investigations by CFA Institute

34. Standard III(E): Recommended Procedures

34.1. Communicating with Clients

35. Standard III(E): Application of the Standard

35.1. Example 1 (Possessing Confidential Information):

35.2. Example 2 (Disclosing Confidential Information):

35.3. Example 3 (Disclosing Possible Illegal Activity):

35.4. Example 4 (Disclosing Possible Illegal Activity):

35.5. Example 5 (Accidental Disclosure of Confidential Information):

36. Standard IV: Duties to Employers

36.1. Standard IV(A) Loyalty

36.2. Guidance

36.2.1. Employer Responsibilities

36.2.2. Independent Practice

36.2.3. Leaving an Employer

36.2.4. Use of Social Media

36.2.5. Whistleblowing

36.2.6. Nature of Employment

37. Standard IV(A): Recommended Procedures

37.1. Competition Policy

37.2. Termination Policy

37.3. Incident-Reporting Procedures

37.4. Employee Classification

38. Standard IV(A): Application of the Standard

38.1. Example 1 (Soliciting Former Clients):

38.2. Example 2 (Former Employer’s Documents and Files):

38.3. Example 3 (Addressing Rumors):

38.4. Example 4 (Ownership of Completed Prior Work):

38.5. Example 5 (Ownership of Completed Prior Work):

38.6. Example 6 (Soliciting Former Clients):

38.7. Example 7 (Starting a New Firm):

38.8. Example 8 (Competing with Current Employer):

38.9. Example 9 (Externally Compensated Assignments):

38.10. Example 10 (Soliciting Former Clients):

38.11. Example 11 (Whistleblowing Actions):

38.12. Example 12 (Soliciting Former Clients):

38.13. Example 13 (Notification of Code and Standards):

38.14. Example 14 (Leaving an Employer):

38.15. Example 15 (Confidential Firm Information):

39. Standard IV(B) Additional Compensation Arrangements

39.1. Guidance

40. Standard IV(B): Recommended Procedures

41. Standard IV(B): Application of the Standard

41.1. Example 1 (Notification of Client Bonus Compensation):

41.2. Example 2 (Notification of Outside Compensation):

41.3. Example 3 (Prior Approval for Outside Compensation):

42. Standard IV(C) Responsibilities of Supervisors

42.1. Guidance

42.1.1. System for Supervision

42.1.2. Supervision Includes Detection

43. Standard IV(C): Recommended Procedures

43.1. Codes of Ethics or Compliance Procedures

43.2. Adequate Compliance Procedures

43.3. Implementation of Compliance Education and Training

43.4. Establish an Appropriate Incentive Structure

44. Standard IV(C): Application of the Standard

44.1. Example 1 (Supervising Research Activities):

44.2. Example 2 (Supervising Research Activities):

44.3. Example 3 (Supervising Trading Activities):

44.4. Example 4 (Supervising Trading Activities and Record Keeping):

44.5. Example 5 (Accepting Responsibility):

44.6. Example 6 (Inadequate Procedures):

44.7. Example 7 (Inadequate Supervision):

44.8. Example 8 (Supervising Research Activities):

44.9. Example 9 (Supervising Research Activities):

45. Standard V: Investment Analysis, Recommendations, and Actions

45.1. Standard V(A) Diligence and Reasonable Basis

45.2. Guidance

45.2.1. Defining Diligence and Reasonable Basis

45.2.2. Using Secondary or Third-Party Research

45.2.3. Using Quantitatively Oriented Research

45.2.4. Developing Quantitatively Oriented Techniques

45.2.5. Selecting External Advisers and Subadvisers

45.2.6. Group Research and Decision Making

46. Standard V(A): Recommended Procedures

47. Standard V(A): Application of the Standard

47.1. Example 1 (Sufficient Due Diligence):

47.2. Example 2 (Sufficient Scenario Testing):

47.3. Example 3 (Developing a Reasonable Basis):

47.4. Example 4 (Timely Client Updates):

47.5. Example 5 (Group Research Opinions):

47.6. Example 6 (Reliance on Third-Party Research):

47.7. Example 7 (Due Diligence in Submanager Selection):

47.8. Example 8 (Sufficient Due Diligence):

47.9. Example 9 (Sufficient Due Diligence):

47.10. Example 10 (Sufficient Due Diligence):

47.11. Example 11 (Use of Quantitatively Oriented Models):

47.12. Example 12 (Successful Due Diligence/Failed Investment):

47.13. Example 13 (Quantitative Model Diligence):

47.14. Example 14 (Selecting a Service Provider):

47.15. Example 15 (Subadviser Selection):

47.16. Example 16 (Manager Selection):

47.17. Example 17 (Technical Model Requirements):

48. Standard V(B) Communication with Clients and Prospective Clients

48.1. Guidance

48.1.1. Disclosing Nature of Services and Information about Costs to Clients and Prospective Clients

48.1.2. Informing Clients of the Investment Process

48.1.3. Different Forms of Communication

48.1.4. Identifying Risks and Limitations

48.1.5. Report Presentation

48.1.6. Distinction between Facts and Opinions in Reports

49. Standard V(B): Recommended Procedures

50. Standard V(B): Application of the Standard

50.1. Example 1 (Costs of Services to Clients):

50.2. Example 2 (Costs of Services to Clients):

50.3. Example 3 (Disclosure of Changed Fee Calculation Methodology):

50.4. Example 4 (Sufficient Disclosure of Investment System):

50.5. Example 5 (Providing Opinions as Facts):

50.6. Example 6 (Proper Description of a Security):

50.7. Example 7 (Notification of Fund Mandate Change):

50.8. Example 8 (Notification of Fund Mandate Change):

50.9. Example 9 (Notification of Changes to the Investment Process):

50.10. Example 10 (Notification of Changes to the Investment Process):

50.11. Example 11 (Notification of Changes to the Investment Process):

50.12. Example 12 (Sufficient Disclosure of Investment System):

50.13. Example 13 (Notification of Changes to the Investment Process):

50.14. Example 14 (Notification of Errors):

50.15. Example 15 (Notification of Risks and Limitations):

50.16. Example 16 (Notification of Risks and Limitations):

50.17. Example 17 (Notification of Risks and Limitations):

51. Standard V(C) Record Retention

51.1. Guidance

51.1.1. New Media Records

51.1.2. Records Are Property of the Firm

51.1.3. Local Requirements

52. Standard V(C): Recommended Procedures

53. Standard V(C): Application of the Standard

53.1. Example 1 (Record Retention and IPS Objectives and Recommendations):

53.2. Example 2 (Record Retention and Research Process):

53.3. Example 3 (Records as Firm, Not Employee, Property):

54. Standard VI: Conflicts of Interest

54.1. Standard VI(A) Avoid or Disclose Conflicts

54.2. Guidance

54.2.1. Disclosure of Conflicts to Employers

54.2.2. Disclosure of Conflicts to Clients

54.2.3. Cross-Departmental Conflicts

54.2.4. Conflicts with Stock Ownership

54.2.5. Conflicts as a Board Member or Director

55. Standard VI(A): Application of the Standard

55.1. Example 1 (Conflict of Interest and Business Relationships):

55.2. Example 2 (Conflict of Interest and Business Stock Ownership):

55.3. Example 3 (Conflict of Interest and Personal Stock Ownership):

55.4. Example 4 (Conflict of Interest and Personal Stock Ownership):

55.5. Example 5 (Conflict of Interest and Compensation Arrangements):

55.6. Example 6 (Conflict of Interest and Compensation Arrangements):

55.7. Example 7 (Conflict of Interest and Requested Favors):

56. Standard VI(B) Priority of Transactions

56.1. Guidance

56.1.1. Avoiding Potential Conflicts

56.1.2. Personal Trading Secondary to Trading for Clients

56.1.3. Standards for Nonpublic Information

56.1.4. Impact on All Accounts with Beneficial Ownership

57. Standard VI(B): Recommended Procedures

58. Standard VI(B): Application of the Standard

58.1. Example 1 (Personal Trading):

58.2. Example 2 (Trading for Family Member Account):

58.3. Example 3 (Family Accounts as Equals):

58.4. Example 4 (Personal Trading and Disclosure):

58.5. Example 5 (Trading Prior to Report Dissemination):

59. Standard VI(C) Referral Fees

59.1. Guidance

60. Standard VI(C): Recommended Procedures

61. Standard VI(C): Application of the Standard

61.1. Example 1 (Disclosure of Referral Arrangements and Outside Parties):

61.2. Example 2 (Disclosure of Interdepartmental Referral Arrangements):

61.3. Example 3 (Disclosure of Referral Arrangements and Informing Firm):

61.4. Example 4 (Disclosure of Referral Arrangements and Outside Organizations):

61.5. Example 5 (Disclosure of Referral Arrangements and Outside Parties):

62. Standard VII: Responsibilities as a CFA Institute Member or CFA Candidate

62.1. Standard VII(A) Conduct as Participants in CFA Institute Programs

62.2. Guidance

62.2.1. Confidential Program Information

62.2.2. Additional CFA Program Restrictions

62.2.3. Expressing an Opinion

63. Standard VII(A): Application of the Standard

63.1. Example 1 (Sharing Exam Questions):

63.2. Example 2 (Bringing Written Material into Exam Room):

63.3. Example 3 (Writing after Exam Period End):

63.4. Example 4 (Sharing Exam Content):

63.5. Example 5 (Sharing Exam Content):

63.6. Example 6 (Sharing Exam Content):

63.7. Example 7 (Discussion of Exam Grading Guidelines and Results):

63.8. Example 8 (Compromising CFA Institute Integrity as a Volunteer):

63.9. Example 9 (Compromising CFA Institute Integrity as a Volunteer):

64. Standard VII(B) Reference to CFA Institute, the CFA Designation, and the CFA Program

64.1. Guidance

64.1.1. CFA Institute Membership

64.1.2. Using the CFA Designation

64.1.3. Referring to Candidacy in the CFA Program

65. Standard VII(B): Recommended Procedures

66. Standard VII(B): Application of the Standard

66.1. Example 1 (Passing Exams in Consecutive Years):

66.2. Example 2 (Right to Use CFA Designation):

66.3. Example 3 (“Retired” CFA Institute Membership Status):

66.4. Example 4 (Stating Facts about CFA Designation and Program):

66.5. Example 5 (Order of Professional and Academic Designations):

66.6. Example 6 (Use of Fictitious Name):

Practice Problems

Solutions

Application of the Code and Standards: Level III

Learning Outcomes

1. Introduction

2. Sovereign Investment Corporation

2.1. Anthony Corrales, CFA, Partner, Hedge Fund Investors

2.2. Ani Mehrotra, CFA, Junior Analyst, National Investments

2.3. Marcia Lopez

2.4. David Hockett and Team

2.5. The Kochanskis

3. Castle Biotechnology Case: David Plume, PhD, CFA

3.1. David Plume, PhD, CFA

4. Castle Biotechnology Case 2: Sandra Benning, CFA, and Claris Deacon

4.1. Claris Deacon

5. Lionsgate Limited & Bank of Australia Case 1

5.1. Tony Hill and Team

6. Lionsgate Limited & Bank of Australia Case 2

6.1. Kirk Graeme, CFA

6.2. The Delaneys

6.3. David Milgram

7. Gabby Sim

Practice Problems

Solutions

Asset Manager Code of Professional Conduct

Learning Outcomes

1. Introduction, Adopting the Code and Claiming Compliance

1.1. Adopting the Code and Claiming Compliance

1.2. Acknowledgement of Claim of Compliance to CFA Institute

2. General Principles of Conduct and Asset Manager Code of Professional Conduct

2.1. Asset Manager Code of Professional Conduct

2.1.1. A. Loyalty to Clients

2.1.1.1. Managers must:

2.1.2. B. Investment Process and Actions

2.1.2.1. Managers must:

2.1.3. C. Trading

2.1.3.1. Managers must:

2.1.4. D. Risk Management, Compliance, and Support

2.1.4.1. Managers must:

2.1.5. E. Performance and Valuation

2.1.5.1. Managers must:

2.1.6. F. Disclosures

2.1.6.1. Managers must:

3. Appendix 6: A. Loyalty to Clients

3.1. Appendix 6—Recommendations and Guidance

3.2. A. Loyalty to Clients

3.2.1. Managers must:

4. Appendix 6: B. Investment Process and Actions

4.1. Managers must:

5. Appendix 6: C. Trading

5.1. Managers must:

6. Appendix 6: D. Risk Management, Compliance and Support

6.1. Managers must:

7. Appendix 6: E. Performance and Evaluation

7.1. Managers must:

8. Appendix 6: F. Disclosures

8.1. Managers must:

Practice Problems

Solutions

2026 CFA Program Level III - Private Markets Pathway

Title Page

Accessibility Page

Table of Contents

How to Use the CFA Program Curriculum

CFA Institute Learning Ecosystem (LES)

Designing Your Personal Study Program

Errata

Other Feedback

Private Markets Pathway

Private Investments and Structures

Learning Outcomes

1. Introduction

2. Features of Private and Public Investments and Markets

2.1. Asset Prices and Performance Measurement

2.2. Liquidity and Investment Process

2.3. Manager Skills

2.4. Portfolio Diversification Potential

3. Private vs. Public Investment Structures

3.1. Private Investment Methods

3.2. Direct Investment

3.3. Indirect Investment

3.4. Private Investment Structures

4. Private vs. Public Investments and Return Metrics

4.1. Public vs. Private Market Performance

4.2. Cash Flow and J-Curve Effects in Private Market Portfolios

4.3. Private Market Fund Multiples

5. Private vs. Public Risk and Return

5.1. Effects of Private Market Features on Risk and Return

5.2. Risk and Return across Asset Classes

5.2.1. Equity

5.2.2. Debt

5.2.3. Real Estate

5.2.4. Infrastructure

5.3. Asset Allocation with Private Markets

Practice Problems

Solutions

General Partner and Investor Perspectives and the Investment Process

Learning Outcomes

1. Introduction

2. General Partner Roles and Responsibilities

2.1. Pre-Commitment

2.2. Capital Commitment

2.3. Capital Deployment

2.4. Capital Distribution and Exit

3. Investor (LP) Perspectives, Fees and Performance Measurement

3.1. Management Fees

3.2. Carried Interest

4. Private Investment Selection and Value Creation

5. Due Diligence and Strategy Execution

5.1. Company Due Diligence and Business Plans

5.2. Project Due Diligence

5.3. LP Due Diligence

6. Private Investment Exit Strategies

6.1. Public Sale

6.2. Private Sale

6.2.1. Private Sale to a Strategic Buyer

6.2.2. Private Sale to a Financial Buyer

6.3. Liquidation

Practice Problems

Solutions

Private Equity

Learning Outcomes

1. Introduction

2. Private Equity Strategies

3. Venture Capital and Growth Equity

3.1. Venture Capital

3.2. Growth Equity

4. Buyout Equity

5. Private Equity Valuation

5.1. Venture Capital and the VC Method

5.2. Valuing Growth Equity

5.3. Use of the LBO Model to Establish Buyout Firm Value

6. Private Equity Risk and Return

Practice Problems

Solutions

Private Debt

Learning Outcomes

1. Introduction

2. Private Debt Strategies

2.1. Venture Debt

2.2. Mezzanine Debt

2.3. Convertible Debt

2.4. Leveraged Loans

2.5. High-Yield Bonds

2.6. Direct Lending

2.7. Project-Related Debt (Real Estate and Infrastructure)

2.8. Distressed Debt

3. Leveraged Loans, High Yield, and Convertible Bonds

3.1. Leveraged Loans

3.2. High-Yield Bonds

3.3. Convertible Bonds

4. Mezzanine and Unitranche Debt

4.1. Mezzanine Debt

4.2. Unitranche Debt

5. Private Debt Profiles and Valuation

6. Private Debt Risk and Return

Practice Problems

Solutions

Private Special Situations

Learning Outcomes

1. Introduction

2. Special Investment Situations

2.1. Financial Distress

2.1.1. Reputational Risk

2.2. Corporate Actions and Other Event-Driven Opportunities

3. Distressed Debt

3.1. Distressed Debt Features

3.1.1. High Leverage

3.1.2. Changes in Assets or Liabilities

3.1.3. Poor Operating Performance

3.1.4. Uncompetitive Business Model or Structure

3.1.5. Crisis in Confidence or Management

3.2. Distressed Debt Financing Strategies and the Bankruptcy Process

3.3. Distressed Issuer Investment Strategies

4. Other Special Situations

4.1. Equity as an Option of Firm Assets: The Merton Model

4.2. Capital Structure Arbitrage and the Merton Model

4.3. Convertible Bond Arbitrage Strategies

5. Special Situations Due Diligence and Valuation

5.1. Special Situations Due Diligence

5.2. Special Situations Valuation Approaches

6. Special Situations Risk and Return

6.1. Credit Risk

6.2. Liquidity Risks

6.3. Legal Risks

Practice Problems

Solutions

Private Real Estate Investments

Learning Outcomes

1. Introduction

2. Private Real Estate Investment Features

2.1. General Characteristics

2.1.1. Planning

2.1.2. Land Acquisition

2.1.3. Construction

2.1.4. Completion and Lease-Up

2.1.5. Operation

3. Private Real Estate Value Drivers and Portfolio Characteristics

3.1. Private Real Estate Economic Value Drivers

3.2. Private Real Estate Portfolio Characteristics

4. Private Real Estate Due Diligence and Valuation

4.1. Private Real Estate Due Diligence

4.1.1. Market Review and Outlook

4.1.2. Property and Project Plan Review

4.1.3. Developer, Contractor, and Supplier Review

4.1.4. Lease Commitments and Cash Flow Projections

4.1.5. Financing Plan Review

4.1.6. Partnership Agreement, Legal, and Documentation Review

4.2. Private Real Estate Valuation Approaches

5. Timberland and Farmland Investment Characteristics

5.1. Timberland Investment Characteristics

5.2. Farmland Investment Characteristics

6. Private Real Estate Risk and Return

Practice Problems

Solutions

Infrastructure

Learning Outcomes

1. Introduction

2. Infrastructure Investment Features

3. Infrastructure Investment Structures

4. Infrastructure Investment Process

5. Infrastructure Investment Due Diligence and Valuation

5.1. Infrastructure Investment Due Diligence

5.1.1. Jurisdictional, Legal and Regulatory Framework

5.1.2. Engineering, Procurement, and Construction Contract Issues

5.1.3. Concession Scope, Specifications, and Term

5.2. Infrastructure Investment Valuation

6. Infrastructure Risk and Return

Practice Problems

Solutions

Glossary

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End User License Agreement