2016 CFA Program: Level III Errata

31 August 2015

To be fair to all candidates, CFA Institute does not respond directly to individual candidate
inquiries. If you have a question concerning CFA Program content, please contact CFA Institute
(info@cfainstitute.org) to have potential errata investigated. The eBook for the 2016 curriculum
is formatted for continuous flow, so the text will fit all screen sizes. Therefore, eBook page
numberingwhich is linked to section headsdoes not match page numbering in the print
curriculum. Corrections below are in bold and new corrections will be shown in red; page
numbers shown are for the print volumes.
The short scale method of numeration is used in the CFA Program curriculum. A billion
9
is 10 and a trillion is 1012. This is in contrast to the long scale method where a billion is 1
million squared and a trillion is 1 million cubed. The short scale method of numeration is the
prevalent method internationally and in the finance industry.
Volume 1
Reading 2: In Exhibit 3 (p. 172 of print), delete Level III CFA Candidate from the
Improper References column.
Volume 2
Reading 11: In Example 8 (p. 369 of print), change the third bullet point to read: Lee has
$5.0 million of capital losses to carry forward, resulting in a deferred tax asset of $1.5 million
related to capital loss carryforwards.
Volume 3
Reading 18: In Example 6, Solution to 2 (p. 359 of print), the hedge should be on ZAR/GBP
instead of MXN/GBP.
Volume 4

Volume 5

Volume 6
Reading 29: In the paragraph describing shortfall computation for sells (below bullets on p.
26 of print), the description should read as follows: The shortfall computation of the
components is reversed for sells; these use benchmark price less trade price rather than trade price
less benchmark price. The implementation shortfall can still be calculated using return on the paper
portfolio less return on the actual portfolio.