Equity Second-Order Measure of Risk
Reading 26, Section 5.1 states that “Each asset class (e.g., bonds, foreign exchange, equities) has specific first- and second-order measures.”I have second-order measures for bonds and options, but...
View ArticleTolerance width
What does a corridor of +/- 10% means. I thought it means 40-60 fo a portfolio with targe of 50 I answered a question that interpret it as 45-55. it also assume that once the portfolio weight reaches...
View ArticleGift tax when donor pays
Hey guys,i was racking my brain earlier trying to make sense of the relative value formula and aftre searching previous threads, it looked like a lot of people have gotten stuck on this one and I...
View ArticleOn the AM Section - writing tips?
Do we have to write in full sentences, or can we use the tables-esque format. For example, can I write: Statement 1: true, This is because of xxxx. Or do I have to write, “Sal is correct in his first...
View ArticleCalculator notation
Question asks: What is the after-tax required return to accumulate 2,000,000 in 18 years beginning with an investable base of 1,235,000 and with annual outflows of 26,000.N=18; PV= - 1,235,000; FV=...
View ArticleTiming on Exam
Ive been taking all the past year exams from 2010 and just finished the 2013 exam, One thing i have noticed is that i am finishing with plenty of time, no time pressure felt at all! Now i know this is...
View ArticleHedge fund - evaluation
When evaluating the performance of a hedge fund that uses leverage, the convention is to: A) use an optimization model to determine the weights on the book and debt values. B) not attempt to evaluate...
View ArticleOption formulas
Do they expect us to show the formulas in options?I kind of do it all with diagram so there is no formula.What to do when the question asks - show your work.Thanks,
View ArticleCommodity Pool Operators
Managed futures programs are typically run by Commodity Pool Operators (CPOs). CPOs can themselves be commodity trading advisors (CTAs) or will hire CTAs to actually manage all or part of the pool. In...
View ArticleSelf-Control Bias vs. Deflation
Is below statement correct?Deflation should not be an issue if the human nature tend to have self-control bias for consuming. People have a strong desire to consume sooner rather than later.
View ArticleRecord retention
Reading 2 :CFA EOC Q # 60 :They say here that Vinken is in compliance. He maintains only 5 years of records-isn’t 7 required?Am I missing something?
View ArticleBehavioral Finance - essay answers HELP!
When identifying which bias, obviously we just state the bias. However, in the next step when it asks to justify with an example, do we need to define the bias then give the example??i.e. CFAI 2014 AM...
View ArticleUse of client brokerge commissions
There are two common topics in CFAI that are not congruent with what I have observed in my career. I work as an analyst at a small registered investment advisory firm managing private wealth...
View ArticleReceive-fixed/Pay-floating in a swap
Can someone please explain how with a receive-fixed/pay-floating position in a swap, you are short a floating-rate bond and long a fixed-rate bond? With receive fixed, you benefit if I.R decreases...
View ArticleStyle return
* 2013 CFA AM Q11 Gunnar Dahl is an analyst at the Scandinavian asset management firm Ibsen Capital. He is asked to evaluate the performance of the firm’s flagship fund, Lux, by analyzing its return...
View ArticlePerformance Attribution - Macro attribution
macro attribution approach:(1) policy allocations: It is up to the sponsor to determine asset categories and weights as well as allocate the total fund among asset managers. As in any IPS development,...
View ArticleJust Breathe.
Went through a 3 day review class weekend and just got the O FUCK feeling and panic. Usually this comes 2 weeks before the exam, so i guess that is better. But having a tough time sleeping and focusing...
View ArticlePure sector Allocation
Does it assume that within each sector, the manager held exactly same underlyings as the benchmark?
View ArticleMonthly standard deviation to annualized standard deviation
Convert monthly standard deviation to annualized standard deviation should mutiply 12^(1/2). Why? Seems like a level 1 question…
View Articlereferral fees
2015 CFA MOck ! Q 2-3Q 2 I think Kim is inconsistant wth B and C.Q3 I do not understand at all.Can anybody explain it to me pleae?Thanks,
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