Seems hard to remember for me..
any tips mnemonics ideas?
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Do you konw impact of all biases and how to mitigate them?
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Framing vs Isolation effect
These look so similar..Are they the same or is something different?
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Tail value at risk (TVAR) - how to calculate
TVAR is VAR + expected loss in the tail (can be estimated by averaging the possible losses in the tail). However, I am not clear (if historical returns are given and we are calculating VAR using percentile method) on whether
It will be VAR (return at a specific percentile, for example 95%) + average of losses beyond it (96 percentile onwards)
or
VAR + average of all possible losses from 95th percentile onwards (VAR already includes the number from 95th percentile)
or
Average of all possible losses from 95th percentile onwards.
Please suggest. thanks
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AF Read-Only Times
AF will be read-only this weekend to help prevent the inadvertent sharing of exam details across time zones. The read-only format will start on Friday at 4:00pm EDT. AF will re-open for discussion on Sunday at 8:00pm EDT. After the exam please remember your pledge to not discuss specific questions or attempt to re-create the exam.
As a member of the AF community you will be among the most prepared in your test center. Thanks for making AF a great community and good luck!
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Something Makes 2010 Exam IPS Question So Hard For Me
Link to question: http://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91343435
1) The expenses of $96,000 are considered “real” by default, and have to be grossed up to be netted from the pre-tax income. When do you need to do this? Normally you divide real return by (1-tax rate) at the end, but here you have a calculator-input method wherein you compute future I/Y, so it is tricker.
2) Her liquidity requirement is the $50,000 in a year for her kid. What about also listing her $3,000,000 annuity she needs to buy in 25 years? Isn’t that a “liquidity requirement” too?
Something about this question gives me the willies.
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Value of currency forward vs currency option
In an example on a past exam.
To calculate the credit risk of a party, you find the value of the contract. For the currency forward, they discounted spot rate and forward rate using the respective risk-free rates to calculate the difference. But for options contract they straight up subtracted the difference between spot rate and the strike price.
Why?
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backwardation and roll yield
Is this an accurate way to look at it?
In an effecient market you would expect spot price to move towards the future price.
so let’s say you are long the future and in 12 months the spot price ends up being higher. well that’s good so you’ll profit (positive roll yield). Theoritically the spot moved in the opposite direction of the future which is (backwards).
Any1 confirm this is correct?
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Can You Bring a digital watch like a Nike heart rate monitor to the test
Does it have to be an old fashioned analog watch? I don’t want them thinking it is a “programmble device.”
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Small Gifts So Not Have To Be Disclosed?
I thought I read somewhere that small “token” gifts ( under $50) do not have to be disclosed to an employer. And being paid for coaching a baseball game still has to be disclosed, both for compensation, and as a conflict against your time with the firm (Additional Compensation Arrangements and Loyalty).
Is this true?
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Good luck playa!!
Good luck y’all!!
I ballsed up last year with a band 5 fail!! I know the material better this year but CFA can still screw with us!
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What are you having for Breakfast/Lunch?
I’m thinking of something heavier for breakfast and light for lunch.
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Things required for the exam
Pen
Pencil
Eraser
Sharpner
Calculator
Passport
Hall Ticket
Anything missing?
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So you think you failed l3? i wanted to share some free notes i found online that were ***** amazing.
I used schwesser too, but mostly in the beginning. did all the pqs, mocks. but near the end, i found the free stuff more useful cuz the search function was easy, (schwesser did a terrible job at the login crap and also with the search function). dude’s name is marc coward, and he is the only canadian i owe a lot too. will donate 100 bucks if i pass and im a cheap guy. made studying fun or at least as bearable as possible.
Broad Summary: https://quizlet.com/12085978/combined-cfa-l3-flash-cards/
Main formulas: https://quizlet.com/11706109/cfa-3-formulas-flash-cards/
AM EXAMS from 2000 to now: https://sites.google.com/site/cfalevel3examprep/extras/practice-exams
Most hilarious notes ever (look up mortality risk)https://sites.google.com/site/cfalevel3examprep/ethics/ss1/reading-1/1a
Donate you broke *****: https://sites.google.com/site/cfalevel3examprep/home
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40/60/80 understates what is needed to pass
The 40/60/80 seems to really understate the actual MPS. If this gives 63%, I would argue the real minimum passing score is much closer to 70%. First of all, if there are only 6 questions, then if >70%, you either got 83.3% or 100%, both above 80%. And the only way to be between 51% and 70%, is to have missed 2 and scored at 66.7%. So both of these suggest to me, that you would have to add at least 5%, if not more, to the MPS calculated using 40/60/80 to get a sense of the real % needed to pass. I am thinking you have to score close to 70% to pass, not 63% or something in that range. Does anyone else agree?
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Loss Aversion bias
The CFAI spend a fair amount of time explaining how an individual would act having loss aversion bias. I have the impressio to have seen different possiblity of reactions when it comes to how behave an investor when having loss aversion bias.
Would soemone know how an investor having loss aversion bias would preferebly act in a losing position situation, would he just hold his losing positions waiting for recovery or would he become risk seeking in accumulating more shares in order to have more chance to recover ? Never thought if risk seeking means holding losing positions or taking more risk in accumulating more shares.
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Burning questions
I’ve been wondering about a situation.
Let’s say I have a liability in the future that needs a cash flow match. If there is no surplus do I grow it at the discount rate of the liabilities or some other rate that I would come to by using multiplication?
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To You CFA Level III folks: Do you reread the CFA Level II stuff?
Hello guys. I took the CFA Level II exam last Saturday and I feel I need to reread a lot of the CFA Level II curriculum. The results are not yet out as of this writing, but regardless whether I passed the exam or not, I still feel like rereading the Level II material anyway.
I checked some Level III sample questions and there seems to be item sets and essay questions on the various portfolios given. Since these portfolios may be composed of stocks, bonds, derivatives, etc., it seems to me that I have to really understand the Level II topics well. Therefore, with one year remaining to the June 2016 exam (whether Level II or Level III still to be determined), I need to get some head start rather than cramming by April-May next year.
So guys, what do you think? Do you go back to your CFA Level II stuff in preparation for the CFA Level III exam? Thanks in advance.
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Forward looking ?
<nothing to do with exam>
What is forward looking earnings ? What is its best value to use ?
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Saturday was tough? Compare it to Level 3 1999 Exam
AM and PM written (even Ethics)
https://sites.google.com/site/cfalevel3examprep/extras/practice-exams
I’ve found it more complete not necessarily entertaining….
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L3 Results Countdown
Assuming an indicative results release date of Tuesday, August 11th – enjoy!!
http://www.timeanddate.com/countdown/generic?iso=20150811T00&p0=179&csz=1&swk=1
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