2007 Paper AM - Q.2 Ingrams IRR calc for nom return
Hi there,Cant understand IRR calc for nominal req rate of return.Arent PV (the current portfolio) 4m, and payments both negative inputs, as PV always negative ?? and withdrawals / pmt 205,000 going out...
View ArticleBehav Finance - confused with Difference bw Anchoring and Adjustment and...
Hi, Difference bw Anchoring and Adjustment and ConservatismAnchoring and Adjustment - is sticking to original forecast - gtg attached to it. O/wtg old info and U/wtg new info and its an Information...
View ArticleOrder of answering Questions
@Sophie @vincentt @Alta12 @Marc @christine While we are answering sub questions under a question, should we answer in the same order? Suppose under question-1, we are given 5 blank pages and it...
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What does number of member firms means?
@alta12 @RaviVooda I'm aware that the higher the number of member firms the better it is, however I thought the firm was referring to the number of companies in the equity market, but it doesn't seem...
View ArticlePaper 2007 AM - Q6 Part B - Risk tolerance of Life Insurance co.
Hi,Paper 2007 AM - Q6 Part BDont understand why the liquidity need for a life insurer increases with a larger share of fixed-rate annuities in the product line, thus lowering risk-taking ability.Is it...
View ArticleSchweser-Vol2-Test-2-Question-7
https://www.dropbox.com/s/85vtnmvp94n69k0/Screenshot 2014-05-24 22.28.38.pngDoubts related to liquidity and risk tolerance1. Liquidity doubt: Since in the question they are saying that very less claims...
View ArticleSchweser-Vol-2-Paper-2-Question-6
@alta12 @vincentt https://www.dropbox.com/s/qpla41p0t33ljwe/Screenshot 2014-05-24 22.24.25.pngFor the solution to the problem where he is asking for utility, I think schweser has the formula wrong. He...
View ArticleSchweser-Vol2-Test2-Question-8
https://www.dropbox.com/s/7eoluo8et9ye7j1/Q8.png@alta12, @vincentt Can we annualize composite performance and benchmark performance in result presentation [Given in Notes:3]. Is it not violation?
View ArticleCFAI 2012 Q7
What formula is this to calculate duration of a call option as i don't remember seeing this in the syllabus?Also, which study session and LOS?The duration of the 90-day call option equals:= (delta of...
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Schweser Exam- Vol-2 - Question-1
@alta12, @vincentt @marc, @Sophie Can we include the parents wish that they want their kids to have high quality education in unique constraints part? If we include, will that be considered...
View ArticleCFAI Previous Test from 2012: Real vs. Nominal
In question 6E regarding Aquiline Chemicals pension plan, the question asks if they should have real or nominal bonds for the portion of their plan that is indexed to inflation. The answer key states...
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Altering Allocation with future confusion
CFAI 2014 PM - WatanbeQuestion 1 asked for the number of Nikko Bond Performance Index futures that must be sold to rebalance the Tsushima pension fund to its target allocation.The solution:@alta12...
View ArticleSchweser Practice Books 2! Very tricky!!!
@ravivooda @vincentt are you finding this too?For the MC questions, they try to trick you 3 or 4 times in one question! It's a nightmare! :-S
View ArticleIPS - Schweser Practice Exam Book 2 (Exam 1) - risk objective
@ravivooda @vincentt IPS states:"I would prefer that the portfolio not lose more than 3% of its value in any one year. Since my bank account is earning 2%, however I realise that my portfolio may...
View ArticleCFAI 2011 - Q5c
@alta12 @RaviVooda Question:Discussion two reasons, based on her human capital, why Finnegan's current allocation to equities should be lower.The guideline answers:1. Finnegan is young and has a large...
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 ArticleCFAI 2011 - Q5c
@alta12 @RaviVooda Question:Discussion two reasons, based on her human capital, why Finnegan's current allocation to equities should be lower.The guideline answers:1. Finnegan is young and has a large...
View ArticleSchweser Mock scores going backwards now in book 2
@ravivooda @vincentt are you experiencing the same?it felt like the entire Exam 2 in book 2 PM was on fixed income and derivatives! :-SS @sophie any recommendation? I'm hitting the 2 CFAI mocks this...
View ArticleUsing GDP/GNP of the countries in the index for customised benchmark - I...
@ravivooda @vincentt Statement (Schweser Mock Exam 2 PM - Q58): International equity indexes are generally weighted using the market cap of the countries in the index, although the relative GDP/GNP of...
View ArticleCFAI Mock A PM - Li (Question 3)
@ravivooda @vincentt Hi guys. I don't quite understand why VAR for SCIRP is being substituted in the multi-factor variance formula to find VAR of error term.Is there an assumption I'm missing between...
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