question on interest rate swaps, thanks very much guys
According to Schweser:The convention is to treat the duration of the floating rate side of the swap as being half the reset period. For example, for a 6-month reset, the duration would be taken to be...
View ArticleBase currency?
Why is it so crucial or easier to make sure the base currency is the foreign currency? I understand that you could easily screw up calculating return %s if you flip flop, but the book stresses using...
View ArticleSchweser Volume 5, page 83, Figure 1
The numbers in this chart due not seem to tie together when trying to multiply the incremental return by the beginning value. The next page states that the calculations do not tie together when...
View ArticleImplementation Shortfall formula
Can anyone post the breakdown of the I/S formula.Delated cost? Missed opportunity cost and Realized gain/loss? What types of price do we use
View ArticleElan Notes Formula Sheet?
Is there a free Elan Notes formula sheet the way there was for Level 1 and 2?
View ArticleGIPS: Fees and Expenses
Schweser volume page 145 talks about calculating returns after deducting expenses. Does this only include direct expenses or also indirect expenses?Thanks!
View Articlethe relationship between inflation and cash returns
Hi guys,When the schewser notes talk about the relationship between inflation and cash returns, it says:Low inflation does not affect the return on cash instruments. Higher inflation is a positive for...
View Articlethe relationship between inflation and real estate prices.
hi guys,when the schewser notes talk about the relationship between inflation and real estate prices.it says:Deflation also reduces the value of real assets financed with debt. In the case of real...
View Articledeflation and real estate returns
According to the notes,“real estate also performs poorly during deflationary times, particularly when the investment is financed with debt”Why is it particularly when the investment is financed with...
View ArticleWhat's the deal with GIPS?
What’s the best approach for GIPS?It has a bunch of requirements and recommendations that I find impossible to infer from logical thinking (like options, at least we can understand the dynamic so that...
View ArticlePace & prioritization for EOC questions
Hi guys.Fingers crossed, I should be done skimming the Schweser books by the first week of March. Aspirationally I’d love to do all the CFAI EOC before diving into full-on practice tests sometime...
View ArticleLevel III Vets...Question
I found for Level II that I did not have to refer to my Level I materials. If there was something I didn’t know (presumably from Level I), it would be in the answer to a problem or in the readings,...
View ArticleWhat's new in Ethics vs. L1/L2?
Haven’t looked at Ethics yet and was going to leave it until the last month. Are there any new sections like there were for L2 (i.e. soft dollar, etc). Is there any chance there are essay questions...
View ArticleHow much time to pass Level 3 if not working?
If you are not working and can devote all of your time to studying, how much time do you think would be necessary to comfortably pass Level 3? So not just winging it and hoping you will pass, but...
View ArticleCreating synthetic stock index using cash
In order to create a synthetic stock index using cash, the number of future contracts that needs to be bought is determined by [T-held(1+Rf)^t]/Pf*multiplier.Why do we use T-held(1+Rf)^t rather than...
View ArticleAsset/Liab Duration vs Reinvestment/Price Risk
I’m trying to understand what happens when Dur(A) and Dur(L) are not equivalent when immunizing a portfolio. (Schweser p 21). Schweser says when Dur(A)<Dur(L), the portfolio is exposed to...
View ArticleHad a bad week
Confession time!!I’ve done next to no studying this week and I feel really bad for it! I’m on the first read and the final schweser book..and was hoping to complete the first full read by the end of...
View Articlehow are levered portfolio range of return wider than unlevered if interest...
In question 16 palme’s two final quesions. Can’t understand how are levered portfolio range of return are wider than unlevered if interest rates change, YC inverted and why is the levered portfolio...
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