private wealth
CFAI 2012 exam Q 1E:” Although amortizing ABS payments are not typically indexed for inflation (as Alonso’s salary is), the structure and payment stream of corporate amortizing ABS most closely...
View ArticleAlternative investment reallocation: sacrifice on returns
Reading 25 Practice problem 3B says: We should reallocate 10% from the 50% S&P allocation to REITS. Annualized return for NAREIT index = 12.71% Annualized return for S&P 500 = 10.94% Annualised...
View ArticleReal World (Real-Time) Problem on Currency Forwards, Interest Rate Parity,...
Hi Guys, Since we are diving into the CFA Level III exam material, just thought I would open up for discussion this real world (and real-time) problem that is something of a paradox to me. I figured...
View ArticleHelp - 6 month Liquidity needs and strategic asset allocation cash weight
I am having issues and keep messing this up. If the problem states that the individual wants to hold 6 month of cash as reserves, this % is held in cash as part of the SAA. (but not deducted from the...
View ArticleReading 23 - Question 20
Apologize in advance for the multiple questions from this reading, i’m struggling mightly!This question asks:“Based on exhibit 1 and assuming interest rates remain unchanges, which bond will have the...
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Output Gap
Would someone explain me why the CFA says that a positive output gap opens in time of recession or slowdown. I thought it was the inverse. http://postimg.org/image/us371l9cz/
View ArticleGIPS
This section was brutal imo.. Does anyone have ideas / advice for remembering the different dates (i.e 2006/2011/2012) etc
View ArticleETF vs Mutual Funds
ETFs create and redeem shares with in-kind transactions that are not considered sales. Can someone please explain this statement? Let’s say you buy USO (Etf on Crude Oil) at 20 and sell it at 30, you...
View ArticleETF vs Mutual Funds
ETFs create and redeem shares with in-kind transactions that are not considered sales. Can someone please explain this statement? Let’s say you buy USO (Etf on Crude Oil) at 20 and sell it at 30, you...
View ArticleLow-coupon issues and negative convexity
Reading 22, practice problem 19 answer says: Low-coupon issues exhibit less negative convexity than high-coupon issues. That is, there will be greater price appreciation for low-coupon issues when...
View ArticleCFAI questions/exams for level 3, what am I missing?
What study material has CFAI made available for L3? I am currently using the practice questions on their webiste (I think a total of 42 sets, or 252 questions), two mocks (a total of 120 MC for the PM...
View ArticleInstitutional Q
Quesiton….For a DB plan… an option:Freeze the Plan. All new employees will partiicpant in a new DC plan where employees can select form a list of choices that range form convservative to more...
View ArticleSMA - GIPS
Can someone explain SMA under GIPS?I am getting very confused with Wrap and SMA?Thanks!
View ArticleCFA LEvel III hours
How many hours of study is recommended for CFA Level III?I know it varies depending on your experience and style of study, but what would be a good ballpark on average? Thanks,
View ArticleImpact of Increasing Active Risk on Active Return
Hi all,Question is in relation to CFAI EOC question #8:The active return of the portfolio was 1.5 with a tracking risk (active risk) of 2. The client’s liabilities are higher than assets so the client...
View ArticleSchweser Videos WTF?!!!
Anyone else ‘enjoying’ the new video player Schweser introduced? The slides are about 5 minutes ahead of what the instructor is discussing. DO NOT BUY THIS PRODUCT. What a piece of garbage. Why would...
View ArticleNominal Growth Rate..
So knowing nominal vs real is going to be key on the exam…We know, Nominal Growth Rate = Real Growth Rate + InflationSo this does mean… Real Growth Rate = Nominal Growth Rate - InflationInflation =...
View ArticleBeta - Covariance -Variance - Standard deviation - Correlation
Anyone else getting confused with all of them?Im reviewing on capital market expetaitons. And it looks like Beta = Covariance / Variance of Market. This Covariance = Standard deviaiton i * Standard...
View Articleprice-weighted index
This is what I see in schweser textThe divisor of a price-weighted index is adjusted for stock splits and changes in the composition of the index (i.e., when stocks are added or deleted), so the total...
View ArticleTechnical Rules
One of the technical rules:A shorter-term moving average moving above(below) a longer-term moving average signals prices will rise (fall).Does it mean momentum becomes clear so need to follow the...
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