Struggling to get started
Anybody else finding it impossible to find the time to even being their LIII studies this year? It may just be a factor of where I am in life/career but I can't even find a free evening or day to begin...
View ArticleHow is "Capital Market Expectations" reading tested
How is "Capital Market Expectations" reading tested as part of the exam?
View ArticleNeed revie
Need honest feedback on my new notes style book for level 3 candidates, the first few chapters are available as sample - http://www.amazon.com/dp/B00ITNWSEQ , Please let me know what did you like and...
View ArticleMy Level 3 Notes Online
For those of you who weren't around last year, here is a link to my Level 3 notes.I put them online so I could have everything in one place and easily link between related LOSs. There is a lot of...
View ArticleRisk Management-VAR
Please help to explain the answerIf the one-day value at risk of a portfolio is $50,000 at a 95 percent probability level, this means that we should expect that in one day out of:A)20 days, the...
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Charitable Gratuitous Transfers
Hi all, I need a little help as I'm stuck with the following formula:Re - pretax earnings of the asset if held by the giverTie - income tax for the asset if held by the giverRg - pretax earnings of the...
View ArticleReading 19: Asset Allocation EOC Q1B (Source: CFAI)
Hi guys Not sure how important this is but I would like to understand why the answer is related to time-series and cross sectional sense. Please help!Question: Discuss the effects of the following...
View ArticleREADING 22 - Fixed Income Portfolio Management - Q23 (Source: CFAI)
Q23. Salvatore Choo, the Chief Investment Officer at European Pension Fund (EPF), wishes to maintain the fixed-income portfolio’s active management but recognizes that the portfolio must remain fully...
View ArticleCurrency Move Based on Real Interest Rate Movement
This may be a dumb question but I feel I see a different answer every time so I wanted to ask all of you what do you think. If the interest rate differential moves or is expected to increase, would the...
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Confusion on the Standard Deviation in Domestic Currency
Equation 3 in the image below is actually the formula to calculate standard deviation for a portfolio with 2 assets.Rdc = Asset return in domestic currencyRfc = Asset return in foreign currencyRfx =...
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Fixed Income: Calculating Duration with Leverage
Have a doubt in the below question Bond A Bond B Bond C Par Value $50,000 $60,000 $40,000 Market Value $52,000 $61,000 $40,000 Effective Duration 8.2 6.8 5Richards wishes to investigate the use of...
View ArticleReading 14: Lifetime Financial Advice, CFA EOC Q3, p424
Q: "Smith is the financial advisor to Steve Hernandez and Michael Lee. Hernandez is a 35-year old physician with an annual income of $200,000 and financial wealth of $250,000. Hernandez’s financial...
View ArticleHow do you tackle GIPS?
There seem to be so many standards in GIPS, some are very similar and the only difference is just must vs should and with all the date differences (e.g. prior to Jan 08, Jan 2010, Beginning of Jan...
View ArticleHow to tackle IPS questions ??
Lets face it.Solving IPS questions is as indispensable as it was taming FRA in level 1 & 2 !Could someone pls throw some light on how to approach IPS questions?
View ArticleBack to the drawing board...
All those thinking of retaking LIII, when would you start studying again, what would you do differently, the same, etc.? What materials were useful, which did you feel were a waste of time? Quite an...
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CFAI R27: Risk Management EOC Q16 (Natural Hedge)
Guys, I am only half getting this. Could you please explain to help me bed down the concept. I find the CFAI answers rather confusing. Thanks!!!Question:Ricardo Colón, an analyst in the investment...
View Article[CFAI EOC - SS10 R22] Question 27 possible error with contingent claim risk?
Hi guys @Jwa @RaviVooda @AjFinance @Alta12 hope your studies been going well, I need your views on this very question.Text:"In addition to his CIO responsibilities, Choo is also responsible for...
View ArticleFoundation/Endowment funding operations
The more responsibility a foundation or endowment has for funding the ongoing operations of an entity the lower the risk tolerance for the foundation or endowment. Has anyone found a % of funding...
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Individual Investors-Taxes
Which of the following moves by a government would most likely lead to the government taking on more investment risk? A)Moving from a heavy dividend tax regime to a common progressive tax regime....
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