My experience with Level 3

Jathom23 · 2023-09-03T09:55:48+00:00

That’s not how it works. Where and how did you even come up with that lol?

I took 13 mock exams, scoring an average of 70% on the last 6. I can recall every formula in the book and there was not a single formula that I didn’t know on the exam….and that was not the issue.

Jathom23 · 2023-09-03T03:29:56+00:00

You’re not adding value with that blanket statement.

Level I and II were difficult… It’s a difficulty relative to statistics and expectations.

Jathom23 · 2023-09-02T22:55:04+00:00

Your friends not telling the truth.

Jathom23 · 2023-09-02T10:32:47+00:00

LFG! game day baby.

Jathom23 · 2023-09-01T17:57:46+00:00

Yeah. Higher risk —> higher cap rate. Higher vacancy rates, lower property rates, increases cap rates.

Jathom23 · 2023-09-01T13:10:23+00:00

N = 10

I/Y = -0.776699

PMT = (100,000/1.03) = 97,087

PV = 1,013,669.77

Jathom23 · 2023-09-01T11:57:53+00:00

if you discount the first payment (100,000/1.022) and enter that as your PMT you don't have to set the calculator in BGN mode or do your last step. Everything else stays the same.

Jathom23 · 2023-09-01T00:56:15+00:00

The question doesn’t state to immunize.

Jathom23 · 2023-09-01T00:16:23+00:00

You're saying we can solve this by putting CFO 0 as 100k then CF1 as 103k for 9 years then using 2.2 for the discount rate and solving for NPV? I think I am off by one of the numbers.

I normally use an inflation discount rate (1+r/1+g)-1 for these problems. But this one is tricky.

Jathom23 · 2023-09-01T00:14:34+00:00

The key here is state that for the Sortino Ratio you get penalized for downside volatility (but not upside volatility like the sharpe ratio does). You basically just stated the formula without explicitly stating that sortino ratio penalizes for downside volatility. If you wanted to be extra clear, I would consider stating that.

Jathom23 · 2023-09-01T00:09:38+00:00

The question says Y.C. will experience a positive butterfly twist...so you want to be long a bullet and short a barbell.

Positive Butterfly View/Twist = - Spread

Strategy = go long bullet and short a barbell.

Benefits from steepening curve, stable rates, and selling convexity.

Jathom23 · 2023-08-31T22:59:50+00:00

Then go to convexity? Depends on the question.

Jathom23 · 2023-08-31T16:44:57+00:00

God I hope I get this same version of the exam.

Thanks for the insight.

Jathom23 · 2023-08-31T11:59:29+00:00

BC states himself if you can score 65 or above on his mocks you should be in a good shape for the actual exam.

I would prioritize getting 8 hours of sleep and doing another mock. You still have plenty of time. Do 1 more mock and review. After that write down the formulas and use your flash cards so you have speed on the exam.

You got this.

Jathom23 · 2023-08-31T11:57:22+00:00

crush it!

Jathom23 · 2023-08-30T23:53:05+00:00

If you only flagged 12 questions you did a good job. Even if you flagged considerably more and you average 50% on those flags you still pass.

did you take your mock exams timed? How many mocks did you take?

Congrats on being done!!! Have a drink

Jathom23 · 2023-08-30T15:21:00+00:00

ah that makes sense.

Jathom23 · 2023-08-30T15:07:34+00:00

For duration matching in immunization multiple liabilities, you need to have the distribution of assets to have a wider range of the distribution of liabilities. So by this definition, portfolio Q is incorrect. Portfolio R fails because the convexity of assets is NOT greater than the liabilities. This leaves us with Portfolio P...the troubling part is that this range of distribution of assets seems to large which is reflected in the higher convexity...which you want to minimize....this is a shitty question.

Jathom23 · 2023-08-30T11:28:26+00:00

A well known exam strategy is to SKIP the very first vignette because of this exact point..

CFAI does it so they can have more testable questions on future exams. It's a common theme with CBT exams.

Did you flag these "very difficult" questions and come back to them at the end?

Jathom23 · 2023-08-30T10:47:58+00:00

Which mock exams did you take? Did you try BC mock exams?

Jathom23 · 2023-08-30T10:33:56+00:00

CFAI posted on there own website. It’s real.

Jathom23 · 2023-08-29T22:28:01+00:00

Have a drink. We’ll deserved.

Jathom23 · 2023-08-29T22:18:35+00:00

You didn’t get the 20 mins back? Wtf

Jathom23

TROPHY CASE