CFA CFA Level 3 Essay Item sets, variables used.

Essay Item sets, variables used.

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      Hi guys,

      Quick question, hopefully someone who has written level 3 already would know.

      When using various finance formulas, I have my own set variables I use, rather than those from the book. Take the CAPM for example:

      The book will state: Ri = Rf + Bi(RM – Rf)
      I would write: E(Rpo) = rf + B( E(Rm) – rf)

      Where E(Rpo)= Expected return of Portfolio
      rf = risk free interest
      B = Beta
      E(Rm) = Expected return of market

      During the Essay Item sets, I will be using formulas to answer the questions, my instinct will be to use my variables and not theirs; I will still yield the same formula and answer, but not with their variables – do you think they will deduct points and not accept my formula? Or do I need to learn their variables for each formula, rather than my own.

      The only reason I do this is because of how I originally learned the formulas – I have never switched over the last two cfa levels.

      If anyone can help that would be great,


      Ashkan Shoja-Nia

    • Up

      @A_nia – completely agree with @sophie. Syntax would not be a significant factor.

    • Up

      Thanks for your help, back to the old ways from physics in high school to annotate each variable. Much appreciated.

    • Up

      Hi @A_Nia, I doubt they will deduct points as long as your answer is correct. I think it’s good practice to annotate/explain your symbols anyway (just like that you did above, but with you defining your symbols), so that removes the doubt completely.

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