Credit Risk
American Option has current credit risk and potential credit risk. Should’t the current credit risk be the value of the option? But the answer from Kaplan says the current credit risk is zero as the...
View ArticleStrong economy - higher or lower real bond yields?
The question is in the subject.- When the economy is strong, the stock market is more attractive than bonds, so bond yields have to be higher to get the investors attention?- In advanced economies,...
View ArticleConfusion with Interest Rate Parity and Currency values
How will raise in interest rate impact currency valuation? I have read two contradictory information in CFA materialsArgument 1: IRP: Difference in interest rate will be reflected in value of the...
View ArticleBackwardation in Layman's Term?
Has anyone found a good explanation of backwardation and roll yield and contango in Layman’s Term?Trying to get a better understanding How people use it to earn a positive return.Tweet WidgetGoogle...
View Articlewhat is the difference between forward premium and basis price ?
could anyone help me with this question ?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View Articlewritten exam
Guys - some advice on the written exam part. I see in prior exams that some of the questions ask you to give two specific reasons for a certain level of Risk Tolerance. If I were to give more than two...
View Articlehow many hours to go through all EOC questions..
first time at CFA 3.. doing EOC now..seems like half the questions are basic/easy which is consistent with level 2 exam in which there were plenty of “apply this formula/ what is the definition of this...
View ArticleCurrency management : 10-delta, 25-delta etc
Hi there, can someone throw some light around the hedging cost across the different available hedging option structures in the currency management and notably : 10-delta put, 10-delta...
View ArticleCommodities - Level of economic activity
Why those commodities that are most affected bythe level of economic activity (e.g., energy, precious metals) tend to be better hedges?Look up on the curriculum but did not find the logic behind?Anyone...
View ArticleGIPS
Hi All,CFAI Topic exam for GIPS - Katherine Ng Q 3:Relavant para: The discussion then moves on to a new composite that Rune is constructing. Arnott tells Ng that the marketing department has decided to...
View ArticleEndowment
This is taken from a CFAI mock:HU has asked Greenhill to manage the university’s endowment. The endowment’s spending rule dictates that it make an annual contribution of 4% of its year end portfolio...
View ArticleWhat is the weight of Risk Management?
Am I missing something or does it not appear anywhere in the list of topic weights? I also consider this one of the most difficult sections.thank you.Tweet WidgetGoogle Plus OneLinkedin Share...
View ArticleMulti-liability question
Hi everyone,Having a bit of trouble here and would appreciate some help on multi-liability immunization, Page 45 of the Fixed Income book.It says that 3 conditions are required1) PV A = PV L2)...
View ArticleGeneral Cash Flows Question
Hello everyone! Question here please! P47 Fixed Income, General Cash Flows. Can someone please explain how this works? Example says if there’s a 2 year horizon, and half of the cash is available today,...
View ArticleWhy Symmetric Cash Flow Matching Reduces Liability Cost
Hi everyone,P51 Fixed Income, can someone please explain why symmetric cash flow matching (uses short-term debt to fund liability prior to when it is due) results in a reduction in the cost of funding...
View ArticleAre mechanical pencils allowed on morning session?
Are mechanical pencils allowed on morning session? Writing in pen really makes me nervous…. If you write in pen, and encircle an answer and then change your mind, how to correct it ? Which one...
View ArticleImplementation Shortfall - Sale Transaction
Day 1: At the close of the market, XYZ shares are priced at $40. The portfolio manager decides to sell 5,000 shares at $41 per share and places a limit order that will expire at the end of the next...
View ArticleWrap Fee Accounts
Is there anyone can explain the concept of Wrap Fee Accounts for me, please?And what should be focus for Wrap Fee Accounts in GIPS?Thanks a lot!Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook...
View ArticleSwap - Fixed rate versus float rate duration
Hi guyz,In a swap, being a fixed rate payer why do we multiply the maturity of the swap by 75% to get the duration of the fixed leg swap.Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View ArticleAM Mock Scores?
I was just wondering if anyone had begun sitting mocks in ernest yet, and if so, what kind of marks are you all getting - for the AM portion particularly.I’ve been using the 2014 version of the...
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