Risk tolerace and investment strategy
Could some smarter guy explain this statement?“Constant-proportion strategy would be appropriate for an investor whose risk tolerance factor rises and falls by an above average amount as her...
View ArticleCommodity trading advisors (CTAs)
CTA is an individual or firm who provides advice regarding the buying and selling of futures contracts or options on futures.Does it mean all the asset class (FX, equites, bond….) or commodity relavent...
View ArticleReading 10 Ex11 question
For the calculation of Account B, I know this is not right, but I can’t pinpoint why my way is wrong.I did the following: FVIF = €3,000 [(1 + 0.06)30(1 – 0.25) + 0.25] = €13673 – I’m thinking of...
View ArticleAdding a new investment in the portfolio
“If the Sharpe ratio of the new investment is greater than the current portfolio Sharpe ratio multiplied by the correlation of the new investment’s returns with the portfolio’s returns, adding the...
View ArticleL3 Retaker: is Kaplan weekly class worth it?
Just wanted to see peoples opnion of the weekly class from Kaplan?Thanks.
View ArticleAlternative investments different indices
I know i’ve asked this question before but as I go through Alt Investments, I wanted to reconfirm.There are many many indices, do I just glance over and forget about them? or do i have to remember what...
View Articlecompensation structures - asset manager code vs. equity portfolio management
there seem to be some differences on the fee structure depending on the section. any thoughts?Asset Manager Code states have to design salary arragements that align interest of client with manager....
View Articlehow does a delta hedged portfolio earn the risk free rate?
I get the construction of the portfolio, but I do not see how it earns the RFR.
View Articlecash balance and near term liquidity needs, blue box question monitoring ss16
when recomending the portfolio I know you don’t want to reccomend an excess of cash because it creates an unncessary cash drag. but if investor has things like CC bills, or other 6 month cash needs...
View ArticleReading 14 Concepts: PBO Vs Total Future Liability
What’s the difference between PBO and Total Future Liability?The CFAI textbook makes it sounds like TFL = PBO + ABOHowever, doesn’t PBO already include ABO?
View ArticleVideos for Level 3?
Signed up and considering starting to study for this exam.I found Elan helpful for CFA L2 but they don’t seem to have for L3?Anyone have any good video recommendations? Or is L3 not good for video?
View ArticleCap risk - Immunization risk
Hello All,This is regarding Cap risk in 2015 Schweser Book 3 Pg 33. I simply cannot wrap my head around this sentence. “If the coupon on the floating rate bond doesn’t adjust upward in response to...
View ArticleCFA level III past exams download links
Anyone looking for CFA Level III past exams -see http://justlevel3.com - downloads section.
View ArticleEthics
In level 2 there was some repetation of Ethics reading from level 1Is any of Ethics reading at level 3 repetation of level 2?
View ArticleFixed Income Options
Fixed Income… sucked on it during level I and still do now.So i came upon the below text:Investor wants protection from rising interest rates (declining bond prices). Either buying a call on interest...
View ArticleInterest rate increase
Hi Guys, I don understand the particular 2 statements well. Can you help to provide some clarity on here.Statement 1: I/R increaseChanges in net interest margins: The bank financial intermediation...
View ArticleReading CFAI slow...
So…I’m reading about 10-15 pages per hour…..how fast do you guys go thru the CFAI text?
View ArticleRisk free of asset only approach and liability relative
Reading 15, Linking Pension Liabilities to Assets, says: In the asset-only approach, the risk-free investment is the return on cash. In a liability-relative approach, the risk free investment is a...
View ArticleToo late to start with CFAI?
As a retaker, I decided to study with the curriculum this year. I failed last year, because, I think, Schweser notes did not help me to comprehend the most imporant areas. I am a little behind my...
View ArticleScenario analysis vs stressing models
This is what I understand: stress testing is divided into:A. Scenario AnalysisB. Stressing modelsStressing models can be further divided into Factor push, Max loss optimisation, and Worst...
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