Alpha and Beta Separation.
SchweserNotes write: “Lastly, long-short investing may be off-limits to some investors. These investors, however, could create an alpha and beta separation approach exposure using equity futures. For...
View ArticleShort extension disadvantage
“A disadvantage of short extension strategies is that they gain their market return and earn alpha from the same source”. What does this mean? Why can’t I short a stock in the tech sector and long a...
View ArticleSame DAY!!! - BSAS Mock Or Schweser 3 Day Review
What should I do???The Boston Security Analysts Mock & The Schweser 3 Day Review are offered on the same day.Any suggestions on which would be more beneficial? I plan on taking the Schweser Mock...
View ArticleTax savings
Schweser reading 9, concept checker 28 has the below: Taxes on full gain = 24,000 Taxes with tax harvesting = 9,000 Recognition of the capital loss therefore has tax savings of = 24,000 - 9,000 =...
View Articlehuman capital and allocation to equities
This is from CFAI 2011 past paper, question 5C. Colleen is 32 years old and worked as an equity analyst for 10 years. Can someone please explain the answer:1. Given she is young, why should she have a...
View ArticleRepresentativeness Bias
I can identifty all other behaviour bias’ except this one. Anyone have an alternative way of classifying this bias/ a better way to help spot it in a investor?ThanksTweet WidgetGoogle Plus OneLinkedin...
View ArticleIRP and forward premium and discount
Hi,Suppose you are US resident (Short term Interest rate 3%) and want to invest in YEN (Short term interest rate is 5%) and In IRP calculation we determine forward premium as +2% which means if you...
View ArticleScored 61% in 2005 AM CFAI mock
…and this my first attempt. Tried to be rigorous at myself. And I have two questions:1) how relevant is 2005 paper ten years later?2) If I score 61% in actaual am part and well in pm, would that...
View ArticleEthics: Company Information passed on to potential investors
If an investment banking firm help a listed company to raise funds privately. Than the IB firm send the fund raising material to potential investors. Is it this matter consider material nonpublic? Or...
View ArticleAnything other than mocks to improve writing constructed response questions?
Hi,Is there any other resources you guys are using for writting constructed response questions better other than Mocks?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View ArticleInterest rate management effect and duration
A manager has the following strategy: add value by actively managing the duration of the fixed income securities in the portfolio. Their return for the year was -0.08%. We need to conclude (yes, no, or...
View ArticleDuke case - roll return
I don’t know how to post images but this is from the Duke case in the online practice problems. What does the below mean?A long position in backwardation will produce a greater roll return than a...
View ArticleAny1 have answer key to the 2011 Mock Exam Essay Section?
Hello,Can someone message me the Answer Guideline for the 2011 Essay Part? I have the questions but no answers :( Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View ArticleCap markets - P/E ratios
“P/E ratios highest in early stages of recovey. High inflation depresses P/E ratios.”Can anybody explain this?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View ArticleAccrual Equivalent Rate of Return, 2012 Question
Alonso’s advisor proposes a 100,000 U.S. dollar (USD) investment in a portfolio of dividend-paying equities in the taxable account. All dividend income and realized capital gains would be taxed at...
View ArticleMock Exams
I stumbled across Go Study (gostudy.io). It has all the mock exams (with answers!) going back to 2003 (so 2003 - 2015) as well as a chart identifying which questions are still relevant. I won’t be...
View ArticleEconomics EOC Q
EOC #3 :For the 1 years tresury, they have added long term inflation expectation, but I took current inflation rate because it’s 1 year term.Am I wrong?Tweet WidgetGoogle Plus OneLinkedin Share...
View ArticleInterest rate swap question on duration impact
LOS C of the Swaps chapter says:Explain the effect of an interest rate swapon an entity’s cash flow risk;Can someone please explain the following?If a company has floating rate coupon payments to make...
View ArticleOutput gap
“Given the conclusion that the country is experiencing an output gap, an analyst would expect a further decline in the rate of inflation in the next year”Can anybody explain the reasoning behind this...
View ArticleReturn requirement for DB plan
This is 2012 past paper. Question asks to calculate the return requirement for the Defined benefit pension plan given: - Discount rate applied to determine the PV of plan liabilities = 5% - Expected...
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