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CFA Glossary of Terms and Formulas

Use this glossary to search CFA terms, formulas, and finance concepts while you study. Browse alphabetically, search for a specific term, or review short definitions across the CFA Program.

This page is built for candidates preparing for CFA Level I, Level II, or Level III.

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The set of rules that guide the process of restoring a portfolio’s asset class weights to those specified in the strategic asset allocation.

Recession

Level I

A period during which real GDP decreases (i.e., negative growth) for at least two successive quarters, or a period of significant decline in total output, income, employment, and sales usually lasting from six months to a year.

The lag in government response to an economic problem resulting from the delay in confirming a change in the state of the economy.

Loan in which the lender has a claim against the borrower for any shortfall between the outstanding mortgage balance and the proceeds received from the sale of the property.

COMMON QUESTIONS

FAQs About KeyPoint Learning's CFA Glossary

A CFA glossary is a reference list of terms, formulas, and finance concepts that appear across the CFA Program. It helps candidates review key ideas while studying for Level I, Level II, or Level III.

CFA Glossary

This glossary is designed to support candidates across the CFA Program. Where level information is available, terms can be labeled by CFA Level I, Level II, or Level III.

CFA Glossary

Yes, formula-related terms may be included in the glossary. For a more focused formula review, use the CFA Formula Sheet resource.

CFA Glossary

No. It is better to understand important terms in context than to memorize every definition by itself. Focus on how each concept works, where it appears in the curriculum, and how it may be tested.

CFA Glossary

You can explore KeyPoint Learning’s CFA resources for study planning, calculator guidance, formulas, GIPS Standards, and CFA Program information.

CFA Glossary
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