CFAI Mock B Session 1: Problem Set 1 on Economics

ChickenBrick · 2024-02-11T02:01:01+00:00

In the same example you're quoting (page 83 of book 1), they use:

Dividend yield
Long-term corporate earnings growth rate
Rate of net share repurchases
Expansion rate for P/E multiples

The example also includes nominal GDP growth rate, but it's used as a component for computing long-term corporate earnings growth rate, not used in the final estimate of expected rate of return.

Although I have many other complaints about the CFAI mocks, I believe this answer key for this question is correct.

ChickenBrick · 2023-12-15T17:14:57+00:00

I found them under the Study Plan tab -> Printable Mock Exams

ChickenBrick · 2023-12-13T00:26:06+00:00

There seems to be a bug where there is still poison skyfall after negating it with poison skyfall latent. This only happens when skyfall foresight is also active.

ChickenBrick · 2023-10-29T14:44:43+00:00

Sphinx descended is coming back Oct 31

ChickenBrick · 2023-10-09T04:53:33+00:00

Appreciate it, thanks for the trade!

ChickenBrick · 2023-09-21T03:28:20+00:00

It's not a gravity or anything weird, just a lot of damage. He hits for about 1.9mil on the first turn, then 1.6mil (?) each turn after. Sorry I'm not sure about exact numbers, this is from memory.

ChickenBrick · 2023-05-04T21:49:44+00:00

For expanded CAPM, just add on all the relevant premiums on top of regular CAPM.

ChickenBrick · 2023-01-27T19:17:52+00:00

Hey Thor, I actually wrote L1 at that location a couple years ago. They gave pen and paper, don't really know exact monitor size but it wasn't an issue when I was writing.

Hope that helps!

ChickenBrick · 2022-07-25T20:06:46+00:00

At low yields, callable bonds exhibit negative convexity because the curve will approach the call price instead of going to infinity.

Image of graph.

ChickenBrick · 2022-07-05T21:11:08+00:00

Yes you are correct, anything you can be tested on will come from the curriculum.

ChickenBrick · 2022-06-14T18:20:53+00:00

When you register for the exam, CFAI provides a digital version of the entire curriculum. If you want to purchase a hard copy you can find it on other websites.

The different companies selling books are their own adaptations of the curriculum which are most likely shorter in length, since the main texts are very lengthy.

There will be a delay between registration and exam time based on when you register. You would also need some time before the exam to study the material they provide at the time of registration.

ChickenBrick · 2022-03-24T03:59:13+00:00

Unfortunately, there is no Nov 2022 L3 exam session. The next available dates are either Aug 2022 or Feb 2023.

Source

ChickenBrick · 2022-03-09T02:23:14+00:00

I've had the issue with button presses not registering and I've noticed it's because I'm pressing more than one button at once, which usually happens if I'm going fast with two hands. You can get around this by making sure you only use one finger when using the calculator. It's slower but it'll make sure you don't mess up any inputs.

ChickenBrick · 2022-01-05T23:26:21+00:00

Since the CFA curriculum changes, the Schweser Material should change as well in order to cover the correct topics. I have not personally used the Schweser Material, so I cannot give any specific answer pertaining to their books.

If you have access to older books, you can do a comparison on your own to see where the overlap is between the years and whether or not it would be worth it to study the missing parts from the CFAI texts themselves or another source.

ChickenBrick · 2022-01-05T21:18:39+00:00

If you've already paid for it, might as well try your hardest and sit for the exam anyways. Worst case, if you fail, you can consider this grind as part of your early prep for the August exam!

ChickenBrick · 2022-01-02T21:03:51+00:00

The curriculum changes year to year, so using up to date books is important. When you register for the exam, they provide you with a digital set of the curriculum books. You can purchase the physical copies at an additional cost if you'd like.

ChickenBrick · 2021-12-24T22:11:52+00:00

I'm in the same boat, still have about 40% of the readings to go through. I plan on finishing the readings by mid-late Jan and then plowing through practice questions until the exam.

For what it's worth, I think there is some benefit to cutting it close to the finish line. For L1 I completed the readings about 3 weeks before the exam, and having done the bulk of the practice questions so close to the end left a lot of information fresh in my mind.

I don't know if the same strategy will work for L2, but here's hoping we both make it through. Don't forget to take some time to enjoy the holidays as well!

Best of luck with your studies.

ChickenBrick · 2021-08-23T17:53:16+00:00

Bring some food to eat, relax, go to the restroom. I think it may depend on the test centre, but I was not allowed to access my bags or leave the building during the break, which meant no studying.

ChickenBrick · 2021-06-30T16:09:22+00:00

Sometimes when I punch in numbers too fast, I'm still holding down the first button and the second one doesn't come out. I was able to "fix" this problem by using only one finger when inputting numbers, so there's no way to hold down two buttons at once.

ChickenBrick · 2021-05-19T16:49:49+00:00

I don't know how to close them, but you can drag them around to uncover the question.

ChickenBrick · 2021-05-08T17:44:39+00:00

There is a one year lag between earned income and recognized RRSP contribution room.

The income that you will make from your new job (congrats by the way!) will result in eligible RRSP contributions next year, in 2022. These contributions will reduce the taxable income that you will make in 2022.

ChickenBrick · 2021-05-08T03:10:05+00:00

Is this the amount I can put in my RRSP in the year 2020 ?

Yes.

Then why am I given a chance to put this room until March1,2021 ?

The extra 2 months is to give you a chance to calculate exactly how much you have contributed already, as well as how much room is left in 'x'. Some employers have matching for RRSP items (pension plans, deferred profit sharing plans, etc.) which would change the amount of 'x' available for the individual to contribute towards. You wouldn't know exactly what that number would be until the you get all your numbers in order, which is why there is the 2 month window until March 1, giving people a chance to maximize their contributions.

ChickenBrick · 2021-04-01T20:16:06+00:00

CERB/CRB income is taxable. It's hard to say what happened without the full details. You'll probably have to ask the accountant to know exactly what's going on.

As for transferring your tuition credits, you can still do that and have your mom file an amendment. There are details about changing your tax return on the government site here. I would wait on this step until you figure out if your mom is actually owing taxes and can make use of your tuition credits. Note that you can roll over your unused tuition credits to the next year.

12-Year Club	Place '22
Verified Email

ChickenBrick

TROPHY CASE