Carry trade position
One year yield levelsSwitzerland -0.103%USA 0.162%Poland 4.753%Mexico 4.550%Based on the above, what is best option for implementing carry trade. Answer is fund in CHF and invest in PLN.Does the...
View ArticleFoundation IPS
If a foundation has a requirement to spend 5% annually on grants should this be noted under liquidity constraints? I’ve come across a few problems that don’t state this and simply say, “No specific...
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Two questions on this problem.1st. how come it was assumed that the gift was AT?Usually gifts to universities are tax deducatable.Also, When calculating her income in q5. how come it was planned to...
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q5. the problem states a high wealth level and a low standard-of-living risk withg emotional biases suggests that a stronger asset allocation change may be warranted.I was under the impression that if...
View ArticleEconomics: Savings-Imbalance Approach
Cant seem to figure this one out as I’m especially weak in economics.One of the approaches to forecasting exchange rates is the savings-imbalance approach, which stipulates that in order to finance the...
View ArticleIRP implications
Can somebody please explain more with the example this point …Selling forward the currency trading at forward discount (premium) will earn a negative(positive) currency return on hedge of that...
View ArticleCFA book Page 408 Reading 28 Swap+Options
Question 18 is little confusing to me, what would be other side of the Sure position?? I think he owns shares but it says he has call option in answer..How ??I know i am missing the direction...
View ArticleLife insurance
According to Wiley: investors allocate more to the risk‐free asset and less to life insurance as the correlation between income and stock market returns increase.- I thought when your income has a...
View ArticleIPS - After tax norminal rate of return
I m so confuse about how to classify the item to either Investment base or annual cash flow when calculating the after tax nominal rate of return, for example: investment income / tax of investment...
View ArticleTax deferral when tax rates are increasing
In answer to Q12 of Reading 11, the answer states :“From a tax perspective, the owner is taxed currently on the cash received and typically receives a tax deferral on the stock rolled over into the new...
View ArticleStandard deviation vs VAR
Question says: standard deviation is more useful than VAR in evaluating new managers and new portfolio strategies. Correct or incorrect?Answer: standard deviation typically requires several years...
View ArticleMacro attribution analysis
What do we need to know about NRABIA?Tweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View ArticleConstructed response - last month
I am struggling with constructed response big time..You never know what they will ask and at the same time we have to prepare for vignettes too …Please share your ideas for last month to gain some...
View ArticleSchweser Question Mock Exam 1 2016 Question 3 F Hedged Currency Standard...
Here is the QuestionSorry Can’t Copy paste but basically question asksStock Market return from French investor perspective is 12% SD 29%RF rateFrench 2% Australia 5%SD of EUR is 14%Expected change...
View ArticleLevered Portfolio Duration
Hiin the text, V4, Q14 page 148, why in the answer they get the duration by dividing the dollar duration on the equity portion only Not the total portfolio value even though the question highlights...
View ArticleDevivative - downgrade
If the bond is expected to downgrade , which credit derivative is best to mitigate ? Why1) credit spread option 2) credit forward 3) binary credit option the ans is 3) but I don’t know why , please...
View ArticleEmotional biais : Reading 6 vs Reading 11
From my point of view, the list of emotional biais given in Reading 11 ( Concentrated asset positions) does not match the one in reading 6 (Behavioral biais of individual)Reading 6:1)Loss...
View ArticleInstitutional Investors: Endowment- Risk Tolerance
Can someone explain why endowment risk tolerance increase or decrease with incresed infaltion with respect to Real expected return and liqiid assets?Guidelines answers have given both view abt this....
View Articleare past AM papers the REAL year's sitting paper?
Someone mentioned in passing that all the AM papers floating out there are the actual exam paper for that year… is this true? thanksTweet WidgetGoogle Plus OneLinkedin Share ButtonFacebook Like
View Article2013 AM Paper
Has anyone already taken 2013 AM Mock?I’ve just done it and it really smashed my spirit.It was a bit longer than the others, finished it with 10 minutes to spare, but I thought I did it OK when I...
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