Position delta
Level II
The overall delta of a position that contains some combination of assets and derivatives.
CFA RESOURCE
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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Positive serial correlation
Level II
Serial correlation in which a positive error for one observation increases the chance of a positive error for another observation, and a negative error for one observation increases the chance of a negative error for another observation.
Potential GDP
Level II
The maximum amount of output an economy can sustainably produce without inducing an increase in the inflation rate. The output level that corresponds to full employment with consistent wage and price expectations.
Preferred habitat theory
Level II
A term structure theory that contends that investors have maturity preferences and require yield incentives before they will buy bonds outside of their preferred maturities.
Premise of value
Level II
The status of a company in the sense of whether it is assumed to be a going concern or not.
COMMON QUESTIONS
FAQs About KeyPoint Learning's CFA Glossary
What is a 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
Does this glossary cover CFA Level I, Level II, and Level III?
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
Does this glossary include CFA formulas?
Yes, formula-related terms may be included in the glossary. For a more focused formula review, use the CFA Formula Sheet resource.
CFA Glossary
Should I memorize every CFA term?
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
Where can I find more CFA study resources?
You can explore KeyPoint Learning’s CFA resources for study planning, calculator guidance, formulas, GIPS Standards, and CFA Program information.
CFA Glossary
KEEP BUILDING YOUR UNDERSTANDING
Explore More CFA Resources
Definitions are useful when you need a quick review. But CFA prep also requires structure, practice, and a clear plan for your exam window.
Use these resources to keep studying: