This module focuses on a comprehensive review of the core asset classes and portfolio management concepts essential for CFA Level III. We will revisit key principles, advanced strategies, and their application in constructing and managing investment portfolios.

This section revisits fundamental and advanced equity valuation techniques, including dividend discount models, free cash flow models, and relative valuation. We will also cover equity portfolio management strategies, such as active vs. passive management, factor investing, and style analysis.

We will review the intricacies of fixed income securities, including bond valuation, interest rate risk management, and credit risk analysis. Advanced topics such as yield curve strategies, duration and convexity measures, and the pricing of embedded options will be covered.

The review will also delve into the management of fixed income portfolios, including immunization strategies, liability-driven investing (LDI), and the use of credit derivatives. Understanding the impact of inflation and monetary policy on fixed income markets is also critical.

This section consolidates knowledge on derivatives, including forwards, futures, options, and swaps. We will focus on their valuation, hedging applications, and use in speculative strategies. Key concepts like put-call parity, Black-Scholes model, and binomial trees will be revisited.

Emphasis will be placed on how derivatives are used to manage portfolio risk, enhance returns, and gain exposure to specific market movements. Understanding the mechanics of option Greeks (delta, gamma, theta, vega, rho) and their implications for portfolio hedging is paramount.

This review covers the diverse landscape of alternative investments, including hedge funds, private equity, real estate, commodities, and infrastructure. We will examine their characteristics, valuation challenges, risk management, and role in portfolio diversification.

Understanding the due diligence process for alternative investments, including operational risks and manager selection, is crucial for Level III candidates.

The culmination of the review is a deep dive into portfolio management principles. This includes revisiting the investment policy statement (IPS), asset allocation strategies, risk management frameworks, and performance evaluation. We will also focus on the practical application of these concepts in constructing and managing portfolios for various client types.

Key areas include understanding the client's objectives, constraints, and risk tolerance to develop a suitable IPS. Asset allocation will be examined through various models, including mean-variance optimization and Black-Litterman. Performance attribution and benchmarking will be critical for evaluating the success of investment strategies.