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Stay with it!

It was this time last year (& the previous 3 years as well) that I was worn out, mentally exhausted, from this CFA process. At lvl 3 you are no doubt feeling the same way, but you have to keep...

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Suggested Practice for the 2016 Level III MCQ Exam

In an earlier post I advised you to focus on the Level III essay exam. While that still holds you can’t ignore the item-set (case study followed by six MCQ questions) exam.   The item-set format is...

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Alterinative Investments - AM or PM

I’ve went thru past CFAI exams and haven’t come across a single AI question in the morning.  Doing the Schweser exams, it’s come up three times in the morning.Are there any sections 100% to assume they...

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goldsboro case

Regarding Q 4,The question states, “e Straits Times Index (STI), a value-weighted index of the 30 largest firms traded on the SGX”The solution states GB1 is a market oriented style (not value) because,...

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Tax formulas

Anyone going to memorize these? I’m talking about the ones in reading 10 of FV(Gift)/FV(Bequest)RV(TaxFreeGift)RV(TaxableGift)RV(TaxableGift) when paid by donorRV(CharitableGift)Am I missing any?In...

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What's the score to beat for L3?

Random question but what is the target “score to beat” for level 3? I feel like on level 1 and 2 you often hear the general saying that scoring above a 70% should mean you are in good shape. I know...

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2016 PM mock VERY strange answer

I’ve just done the 2016 PM mock this morning and in the answer key to number 49 the is a very strange answer indeed….I think someone at the CFAI has been playing around and forgotten to change it...

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Macro attribution analysis

Pretty sure I’m missing something obvious, but where exactly do the step-wise calculations account for TAA return? It seems all the w’s used are for the policy weights. Shouldn’t we be using the real...

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The Immunization Target Return

HiFor an upward sloping yield curve,The Immunization target return will be less than YTM due to lower reinvestment return.How is this?when we have upward sloping yield curve meaning interest rates are...

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If treasury bond's YTM is higher then why their demand goes down?

If  treasury bonds yields are higher that means their Treasury bonds prices are low so their demand should go up right? but in the curruculum, they say their demand will go down when treasury bonds...

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Strategy for last month ??

What’s the advice for last month ??Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like

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This is wrong right? Over/under-hedging with a forward contract

Wiley’s text states:Instead of matching the underlying spot or forward position with identical value of hedged instrument, the portfolio manager can adjust the hedge ratio to be above or below 100%....

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CFAI 2011 AM Q2...why no mortgage payment?

In the 2011 CFAI AM exam, question 2…In the “story” it is clearly stated that the family have an annual USD 225,000 mortgage payment that has to be paid - but then in the answer, when calculating the...

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Currency Management

I find this to be one of the most difficult readings in the curriculum.  What percentage of the exam do you realistically expect this will be?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like

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Exchange traded futures and interest rate risk

How is it that exchange traded futures reduce interest rate risk?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like

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Repos - Real World Example?

Hello, having trouble understanding repos. Can someone provide a real world example of who the typical borrower and lender is between a bank and a hedge fund?Tweet WidgetGoogle Plus OneLinkedin Share...

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Available funds for asset base

When figuring out our intitial asset base I thought we were not supposed to include liquidity requirements that would be due in under a year.  (I.e need 400k to buy a second home in six months). I came...

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Need to use pencil or pen for writting constructed response?

What’s the policy about writing?? with pen or pencil ?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like

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Leveraged FRN - Reading 28

All solutions in text example, BB example 3 and EOC problem 3 are using the proceeds from selling leveraged FRN with face value FP to buy multiple of face value FP (1.5FP) in fixed coupon bonds. Where...

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Swaps CFA page 363 364 365 366

These two examples are really crazy..I mean what’s the odd for these to show up in the exam?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like

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