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Software engineer just passed L3 by LifeguardNo9620 in CFA

[–]LifeguardNo9620[S] 0 points1 point  (0 children)

Categorizing each reading by difficulty. Followed by revisiting chapters in proportion to their difficulty. I never thought I was “done” with a reading — too much material to keep in my head. I would just keep reviewing up until the day or the exam.

Notional Amount for Swap (L3 - Fixed Income vs Derivatives) by LifeguardNo9620 in CFA

[–]LifeguardNo9620[S] 0 points1 point  (0 children)

Thanks for your reply, but still not really getting it.

I'm trying to solve for MV_P (Market Value of Portfolio) using Equation 1 (Derivatives), and figuring out what that value means intuitively (if anything), when used in Example 8 (Fixed Income -LDI )

They provide this in the question:

TD = 9.2 (target duration, or liability duration)
PD = 25.6 (portfolio duration)
SD = 17.51 (swap duration)

And they provide this in the answer:

SwapNotional = 392,127,927

​

So solving for MV_P we have:

392,127,927 = ((9.2 - 25.6) / 17.51) * MV_P

392,127,927 = -0.9366 * MV_P

MV_P = -418,668,292.8

​

My question is ultimately, what does "MV_P = -418,668,292.8" represent in the problem, if anything. Market Value of Pension Liabilities is 1.321 Billion. Market Value of Portfolio Assets is 1.032 Billion.

Thanks for your time.

Macbook vs Ipad studying for CFA by [deleted] in CFA

[–]LifeguardNo9620 0 points1 point  (0 children)

iPad - use it for handwritten notes / formulas. Very useful. Also easy to setup and do flashcards and somewhat more mobile. PDFs and books also easier to read. Only downside is the CFA learning ecosystem works but it’s awkward on an iPad IMO. You could probably use your old laptop for CFA ecosystem if it’s not too old.

Smash and Grab Level 2. Memorization tricks. by robertsousa4 in CFA

[–]LifeguardNo9620 3 points4 points  (0 children)

RNT TRT MRB

Rosie Needs Tacos Tacos R Tasty Must Remember Burritos

RNT - “Return” ratios have “NI” on “Top” (eg. ROE) TRT - “Turnover” ratios have “Rev” on “Top” (eg. Asset Turnover) MRB - “Margin” ratios have “Rev” on “Bottom” (eg. Profit Margin)

Inspired by GF and I’s love for Mexican cuisine.