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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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CFA Candidate Studying KeyPoint Learning
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An information-processing bias in which people take a heuristic approach to estimating the probability of an outcome based on how easily the outcome comes to mind.

A measure of the liquidity of a security’s market. The mean effective spread (sometimes dollar weighted) over all transactions in the stock in the period under study.

Back office

Level III

Administrative functions at an investment firm such as those pertaining to transaction processing, record keeping, and regulatory compliance.

Backtesting

Level III

A method for gaining information about a model using past data. As used in reference to VaR, it is the process of comparing the number of violations of VaR thresholds over a time period with the figure implied by the user-selected probabili...

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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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