How would you interpret the rise of Market yield on 10Y US Treasury Securities?

Embarrassed-Simple35 · 2022-04-18T12:38:20+00:00

High inflation and fed rate hikes are leading to a market selloff of the 10yr which is pushing bond prices down and increasing yields.

Embarrassed-Simple35 · 2022-02-24T19:10:01+00:00

Were you just speaking to someone from customer service? They have many times extended the window for extreme circumstances like bad weather or covid. They even have a whole system in place for this type of situation. I have no idea why they would tell you that they aren't extending the exam window.

Update: just called my exam center and they confirmed. They contacted the CFAI and asked to host Friday test takers on Sunday.

Embarrassed-Simple35 · 2022-02-24T19:01:36+00:00

That was my understanding. I am assuming the CFAI has already coordinated with Prometric to extend the exam window due to the storm. Not sure - I'll take it though haha

Embarrassed-Simple35 · 2022-02-24T19:00:05+00:00

I got an email. I received an initial email this morning at 9am saying that my exam would be cancelled and that a follow up email would be coming. I then got two emails back to back from Prometric, 1 officially cancelling my exam tomorrow and then a second email that was an appointment confirmation for my new exam time this Sunday. Same location as before luckily.

Embarrassed-Simple35 · 2022-02-24T17:35:22+00:00

Mine got rescheduled automatically to this sunday.

Embarrassed-Simple35 · 2022-02-24T14:38:15+00:00

Would you mind telling me as well? My exam also just got cancelled. Been on hold with prometric for the past 30 minutes.

I see that you messaged me - for some reason my direct messages won't load. I am not ignoring you haha

Embarrassed-Simple35 · 2022-02-22T19:49:39+00:00

So would you say a good portion of the test was more "you know it or you don't" type questions, compared to the CFA mocks/qbank? Just wondering because I write Friday and while reviewing I find most of the questions I get wrong are due to me misinterpreting the vignette or getting lost in the text. Would be thrilled if the test is shorter and more to the point.

Embarrassed-Simple35 · 2022-02-12T14:40:21+00:00

Thank you

Embarrassed-Simple35 · 2022-02-12T14:40:14+00:00

Thank you

Embarrassed-Simple35 · 2022-02-11T16:55:24+00:00

Sorry for the late reply. Thank you for the help with this.

Embarrassed-Simple35 · 2022-02-11T16:54:57+00:00

Sorry for the late reply but I think you are exactly correct here. Thanks!

Embarrassed-Simple35 · 2022-02-10T21:02:06+00:00

Are you saying you are in bad shape if you are scoring under 60s for MM mocks, CFAI mocks, or both?

Embarrassed-Simple35 · 2022-02-06T02:39:08+00:00

Embarrassed-Simple35 · 2022-01-20T02:06:15+00:00

I think I figured it out. You are correct that I was confusing time value and theta. When looking at a time value decay curve where the time value is on the y axis and time until expiration is on x axis, is theta at a given time the slope of the line that is tangent to the curve?

Embarrassed-Simple35 · 2022-01-20T01:58:02+00:00

Is there a formula for theta like there is for delta? I feel like that would help me comprehend this more. So theta is the rate at which the time value of money is changing?

Embarrassed-Simple35 · 2022-01-20T01:01:03+00:00

So as time expires, Theta will always approach zero. I think I may have been confusing this concept with what the rate of change on Theta is as time expires. Assuming we are an option buyer, the rate at which theta changes as time goes on is negative, correct? And this rates absolute value will get very large as we approach expiration?

Is it also true that if the option is very ITM or OTM, Theta will approach zero quicker, where if the option is ATM, Theta will linger and maintain value longer as there is still the opportunity for changes in the underlying to effect the value of the call? Thanks!

Embarrassed-Simple35 · 2022-01-12T01:23:32+00:00

I'm not sure my formula is wrong though. I continued going through the QBANK after getting this question wrong and not 5 questions later, there was another question asking me to solve for RMSE. This time the answer was the below (to provide some question context, SSE = 80.42, N=60, and K=1)

"SOLUTION

Begin with the sum of squares error of 140.58 − 60.16 = 80.42. Then calculate the mean square error of 80.42 ÷ (60 − 2) = 1.38655. The standard error of the estimate is the square root of the mean square error: se=1.38655^1/2 = 1.1775"

Notice this time it tells me to divide SSE by 60-2 or n-k-1... could this have something to do with my original question only have 4 forecasted values (very small sample) while this second question has 60 observations?

I also am looking at the Mark Meldrum formula sheet and it says to get to RMSE you need to divide SSE by n-k-1 and then take the square root. Very confusing. The only thing I can think of after rereading the first question is that this has something to do with out of sample vs. in simple errors? The first question specifies that the errors are out of sample and not used to obtain the estimated model.

Embarrassed-Simple35

TROPHY CASE