Reading 23 - Portable Alpha?
Can you please help me with the answer provided to Question 7 in the EOC problems for Reading 23 (CFAI textbook):Q. Simon Hayes …. expertise lies in building market-neutral long-short strategies using...
View ArticleBehavioral Finance: Difference between Representative Bias and HindSight bias
Please help me understand Representative bias and also the difference between Representative Bias and HindSight biasI am getting very confused in these 2 biases.@Alta12,@vincentt,@sophie,@jwa,@marc
View ArticleHow old is considered old?
I might have missed something here, I always thought 10 years isn't long based on what I understand from the syllabus. Also, I thought a retired person should have a shorter time horizon, shouldn't...
View ArticleTopic by Weightings
Topic Area Level III Ethical and Professional Standards (total) 10%Asset Classes (total) 35-45%Alternative Investments 5-15%Derivatives 5-15%Equity Investments 5-15%Fixed Income 10-20%Portfolio...
View ArticleClik here to view.
[CFAI EOC - SS10 R22] Spread widening
Question 22. Based on Exhibit 1, for investors that purchased 10-year U.S. notes, the spread widening in basis points that will wipe out the additional yield gained for a quarter is closest to:A. 6.03...
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...
View ArticleClik here to view.
[CFAI EOC - SS10 R22] Spread widening
Question 22. Based on Exhibit 1, for investors that purchased 10-year U.S. notes, the spread widening in basis points that will wipe out the additional yield gained for a quarter is closest to:A. 6.03...
View ArticlePainful hand and shoulder
This morning I did the 2013 Level III AM paper in a timed situation to see if I would be able to write so much and how long it took me to answer each question. Oof, now my hand hurts dreadfully and my...
View ArticleCFAI Mock Exams
I had a question about the CFAI exams, which CFAI have annoyingly made difficult to print out and do on paper. If I do them on-line, then is it possible to pause after an hour, say, and come back to it...
View Article[Schweser] Exam 1 Morning Q7 Aii
Summary of the vignette:Rine Ruby has core capital of £1,000,000 and excess capital to be £4,000,000. He would like to provide each of his children a relatively equal share of his accumulated wealth....
View ArticleREADING 15: Managing Institutional Investor Portfolios - Endowment (Help...
Information given in the School Endowment example:1. Annual operating budget of approx. $10m (90% goes to salaries and benefits for teachers and a small admin staff.2. The school has no debt3. The...
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 ArticleREADING 15: Managing Institutional Investor Portfolios - Endowment (Help...
Information given in the School Endowment example:1. Annual operating budget of approx. $10m (90% goes to salaries and benefits for teachers and a small admin staff.2. The school has no debt3. The...
View Article2010 Level III AM Exam
I've been going through the previous years' exams and I've got a couple of questions about the guideline answers on the 2010 AM exam.Q1 A(i) asks what are the liquidity constraints in Elisa Lima's...
View ArticleCFAI Practice Exam
For level 1 and 2, there was one full-length practice exam on the CFAI web site that you could print out and take for free. I know there are three past morning sections you can print out, but is there...
View ArticleSwaps - Is there a LOS on Structured notes?
Two working examples in Reading 31 in CFAI text on leveraged floater and inverse floater. I cannot find the LOS on this. Any idea?
View Article2012 CFAI exam AM - Q7E (Dynamic hedging vs options hedging for interest rate...
@vincentt @ravivooda @Sophie Given: A portfolio of government bonds and MBS securities with the same duration. PM forecast interest rate volatility will rise significantly and yield curve will shift...
View ArticleThe Ultimate Guide to Tackling IPS Questions - Institutional Investors
Since @lakshya25 's epic question on this a few weeks ago, which I only answered for Individual Investors, I thought I'd follow up with the various RRTTLLU summaries for Institutional Investors, e.g....
View ArticleIPS - inflation rate and required return
@ravivooda @marc @ajfinance @Sophie Both @vincentt and I are trying to ascertain whether foundation/trust and endowment is the only institutional portfolio that requires adding inflation. Please let...
View Article2011 Level III CFA AM exam - Question 7
@vincentt @ravivooda This entire question looks like corporate finance in level II, in 2013. I don't think it's in Level III LOS for 2014. Could you please let me know your thoughts on this. Thanks!...
View Article