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CFA level III guidelines answers 2016

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CFA level III guidelines answers 2016

LEVEL IIIQuestion:#1Topic:Institutional PMMinutes:20Reading References:# 13 - “Managing Institutional Investor Portfolios." by R. Charles Tschampion,

CFA level III guidelines answers 2016 CFA, Laurence B. Siegel, Dean J. Takahashi, and John L. Maginn. CFALOS:The candidate should be able to:a.contrast a defined-benefit plan to a defined

-contribution plan and discuss the advantages and disadvantages of each from the perspectives of the employee and the employer;b.discuss investment ob CFA level III guidelines answers 2016

jectives and constraints for defmed-benefit plans;c.evaluate pension fund risk tolerance when risk is considered from the perspective of the 1) plan s

CFA level III guidelines answers 2016

urplus. 2) sponsor financial status and profitability. 3) sponsor and pension fund common risk exposures. 4) plan features, and 5) workforce character

LEVEL IIIQuestion:#1Topic:Institutional PMMinutes:20Reading References:# 13 - “Managing Institutional Investor Portfolios." by R. Charles Tschampion,

CFA level III guidelines answers 2016 ets;f.prepare an investment policy statement for a participant directed defined-contribution plan;g.discuss hybrid pension plans (e.g., cash balance p

lans) and employee stock ownership plans;h.distinguish among various types of foundations, with respect to their description, purpose, and source of f CFA level III guidelines answers 2016

unds;i.compare the investment objectives and constraints of foundations, endowments, insurance companies, and banks;j.discuss the factors that determi

CFA level III guidelines answers 2016

ne investment policy for pension funds, foundation endowments, life and non-life insurance companies, and banks:k.prepare an investment policy stateme

LEVEL IIIQuestion:#1Topic:Institutional PMMinutes:20Reading References:# 13 - “Managing Institutional Investor Portfolios." by R. Charles Tschampion,

CFA level III guidelines answers 2016 of institutional investors;m.compare the asset'liability management needs of pension funds, foundations, endowments, insurance companies, and banks;n.

compare the investment objectives and constraints of institutional investors given relevant data, such as descriptions of their financial circumstance CFA level III guidelines answers 2016

s and attitudes toward risk.© 2016 CFA Institute. All rights reserved. 2016 Level III Guideline AnswersMorning Session - Page 1 of 49Level IIIAnswer Q

CFA level III guidelines answers 2016

uestionon This Page1-A. Calculate die return requirement to fully fund each subscription option. Determine which subscription option is most appropria

LEVEL IIIQuestion:#1Topic:Institutional PMMinutes:20Reading References:# 13 - “Managing Institutional Investor Portfolios." by R. Charles Tschampion,

CFA level III guidelines answers 2016 rns, for the return requirement calculations.BasicThe investable base after payment of the one-time immediate initiation fee is: Investable base Ito =

USD 21.000.000 - USD 500.000 = USD 20.500.000The return requirement is calculated using the sum of the annual subscription expense as a percentage of CFA level III guidelines answers 2016

the investable base, the management fees, and total price inflation.USD 800.000. USD 20.500.000 = .0390 = 3.9%Return requirement Biw = 3.9%+ 0.5% + 2

CFA level III guidelines answers 2016

% +1% = 7.4%PremiumThe investable base after payment of the one-time immediate initiation fee is: Investable baseptaton = USD 21,000,000 - USD 1,000,0

LEVEL IIIQuestion:#1Topic:Institutional PMMinutes:20Reading References:# 13 - “Managing Institutional Investor Portfolios." by R. Charles Tschampion,

LEVEL IIIQuestion:#1Topic:Institutional PMMinutes:20Reading References:# 13 - “Managing Institutional Investor Portfolios." by R. Charles Tschampion,

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