Valuation of Forwards - CFA method isn't intuitive?
Okay … I don’t really understand the “value of a forward” contract from a conceptual standpoint. I don’t understand where the formula comes from … it makes no intuitive sense to me.Here’s an overview...
View ArticleVaR
Statement #1:“A portfolio’s VaR will be larger when it is measured at a 5 percent probability than when it is measured at a 1 percent probability.” Statement #2:“A portfolio’s VaR will be larger when...
View ArticleCross Hedge vs. Proxy Hedge
Could someone explain what is the difference between cross hedge and proxy hedge, please?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View Articlecallable bond performance
When interest rate is in the historical low below coupon rate, and expected to rise, why callable bond will outperform the non-callable bond?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View ArticleNeed Advice on Study Plan
I have completed the CFAI materials and Schweser Notes once and also watched the video classes twice.Now I have started to do the part of multiple choice questions in mocks. But I found I could just...
View ArticleParallel Shift in Yield Curve Effect on Immunization
Hi,It says in the CFAI that a parallel shift in the yield curve will result in the portfolio value increasing (Exhibit 11 Reading 20). I don’t understand how this can happen as an increase in interest...
View ArticleMultiple Liability Immunization
For mulitple liability immunization, the CFAI mentions that 1) The PV of assets must equal PV of liabilties2) The duration of assets and liabilities must match3) The distribution of durations for the...
View ArticleAnyone is using Wiley for Level III?
I passed Level II using Elan materials, which I think was really good and helped me pass. Now they were purchased by Wiley and started offering Level III this year. Just wondering how is it? Looks like...
View Article2016 Level 3 Schweser study notes available (HD Quality)
Hello2016 Schweser Study Notes+other exam materials are available for CFA Level 1,2,3 exam 2016. They are of HD quality and without any watermarks. If interested, contact me on Email:...
View ArticleS6 Reading 13 (Managing Institutional investor portfolio) practice problem 9...
I cannot understand the question and the asnwer of Q9.D part.Quetion:.Winthrop BankWinthrop Bank is a commercial bank with operations in North America. Evaluate the effect of each of the following...
View ArticleMacauly Duration
To calculate macauly duration, which yield to be taken as yield? is it market yield or purchasing yield ? which one is more accurate to apply to calculate portfolio duration? This is for a situation...
View ArticleGIPS
I’ve got a question principally for the successful L3 passers:How the f*** did you do to study the GIPS material? There is no way I’m gonna study all that s***…Any advice would be much...
View Articlewhy (1-Tg) in numerator when it is still paid by donor?
When paid by receiver numerator is reduced by (1-Tg), got it but When paid by Donorwhy numerator still has (1-Tg)?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View ArticleAlternative Investment CFA BB page 53 question 3
Can someone explain what’s the issue going on in this real option thing? Why is there an incentive for producer? Is it a hedge position or speculation? What’s the producer’s perspective here?Tweet...
View ArticleMultiple-liability immunization question
Statement 1“Whenever XX implements a multiple-liability immunization plan, the market value of the assets should be compared with the present value of the remaining liabilities by discounting the...
View ArticleYardeni Model
According to the model, Justified forward P/E = corporate bond yield + d*LTEG.But sometime I saw the question just gives you a trailling P/E, so must I convert it into forward P/E before justifying the...
View ArticleNAREIT index hedged v/s NAREIT Index??
What’s the difference between these two? CFA Reading 24 Volume 5 Page 17 Exhibit 3Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
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Application of Derivatives - Mamani
Hey, has anyone done the practice multiple choice questions for derivatives?For questions 4/6 in relation to Application of Derivatives Mamani the passage states this for the question Another of...
View ArticleAsset Allocation - Reading 17
A long swap position reflects commodity-like exposure to asset class ? Can anyone explain it to me in layman’s terms? ThanksTweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View ArticleAnybody have experience in Schweser Secret Sauce and Mind Maps?
If so, could you let me know if you find it worth its cost? Thanks!Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
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