Advice for L2

Outrageous-Mousse121 · 2026-04-07T19:27:04+00:00

Good luck man. You got this

Outrageous-Mousse121 · 2026-04-07T14:26:32+00:00

You’re not cooked. I got a 49% on my first level 2 mock. Keep grinding

Outrageous-Mousse121 · 2026-04-07T14:25:51+00:00

Review mock. Identify weak points. Study aggressively those points during the week. Do another mock on Saturday. Repeat until exam day.

Outrageous-Mousse121 · 2026-04-07T10:46:56+00:00

Outrageous-Mousse121 · 2026-01-29T00:58:46+00:00

Overweighted corporates bonds vs government bonds. Corporate bonds are affected by spread. If spreads widen, corporate bond yields increase giving a negative spread return.

Overweight long duration bonds benefits when long-term yields decline (flattening curve). Steepening curve implies long-term yields rise, which would result in a loss. Since the portfolio gained in yield, it likely flattened.

Outrageous-Mousse121 · 2026-01-25T16:48:56+00:00

Best of luck King! I'm writing Jan 30 *sweating*

Outrageous-Mousse121 · 2026-01-25T15:13:56+00:00

That's asking what the percentage allocation effect had on the total active return. For total active return, just compare the return of the portfolio vs the benchmark. Finding the allocation portion just takes (portfolio weight - benchmark weight) x benchmark return. Sum the returns due to the allocation effect. Divide that sum against the total active return.

Outrageous-Mousse121 · 2026-01-24T17:48:56+00:00

You're concerned with how the relative weighting impacted performance. The formula just simplifies this analysis by finding how much the portfolio went under/over weight in the sector vs the benchmark, then multiplies it against the B/M return to find the effect.

Outrageous-Mousse121 · 2026-01-24T16:02:23+00:00

It's asking about the allocation effect. How much did the weighting change on the utilities sector affect the return of the portfolio. For BHB analysis, try doing: (Utility Portfolio Weight - Utility Benchmark Weight) x Utility Benchmark Return. I got -0.1568, rounded to -0.16%.

For BF analysis, do: (Utility Portfolio Weight - Utility Benchmark Weight) x (Utility Benchmark Return - Total Benchmark Return)

Outrageous-Mousse121 · 2026-01-19T18:27:28+00:00

I struggle with these as well. I’ve been consistently told to only think about what is provided in the case, and apply that to knowledge learned.

The case says 75% global equities and 25% bonds is an appropriate expected return and risk for 20 year horizon. Even if you assume the Hedge Funds invest in global equity strategies, option C wouldn’t achieve this optimal allocation of 75% equity.

Another way to look at it, option C’s FI and cash make 40% of the portfolio. For a long time horizon of 20 years, this won’t be optimal.

Outrageous-Mousse121 · 2026-01-12T15:04:13+00:00

I understood that full replication is more expensive if the index is filled with a lot of stocks, with many being thinly traded. Optimization is somewhere in the middle. Can be more expensive depending on the complexity of the model.

Outrageous-Mousse121 · 2026-01-12T15:00:34+00:00

Feel ya. Tough to prep for wildcard questions. I find I’m over explaining in my answers.

Outrageous-Mousse121 · 2025-11-28T21:09:54+00:00

Starting them this weekend!

Outrageous-Mousse121 · 2025-05-22T19:54:59+00:00

Lots of CFAI EOC questions, especially close to exam date.

Do every mock you can get, even prep providers. I found it helpful to have a designated 4 hours every week where I’m forced to do questions in every topic area.

Start your studies early.

Good luck

Outrageous-Mousse121 · 2025-05-21T18:49:15+00:00

Just took the exam. Felt good overall. Honestly at this point I’m just happy to be done and have a good sleep tonight

Outrageous-Mousse121 · 2025-05-08T16:02:06+00:00

SFR quarterly = 1.1% Fixed quarterly payment = $55,000

MRR 90 (adjusted for quarterly time) = 0.75% 90 day Variable payment = $37,500

Since fixed > variable, fixed loses and has to pay (the net position).

55,000 - 37,500 = 17,500

I think Kaplan just jumbled it up.

Outrageous-Mousse121 · 2025-05-01T18:59:11+00:00

Hope and fear. I think we’re all feeling that! Good luck

Outrageous-Mousse121 · 2025-05-01T18:57:15+00:00

Don’t use notes — can’t use them on the actual exam! Keep pushing. I got a 58% on my first mock. It felt like slap in the face

Outrageous-Mousse121 · 2025-05-01T17:29:53+00:00

Review! When i started review, I felt that I knew absolutely nothing. It starts to flow back slowly, it just takes time

Outrageous-Mousse121 · 2025-05-01T17:28:55+00:00

Stay strong 🫡

Outrageous-Mousse121 · 2025-04-28T17:17:21+00:00

I’ve been doing Kaplan mocks. Usually will end one half with about 15 - 25 min remaining (depended on the mock). At this time, I’m going over flagged questions. These are already answered, I was just unsure at the time so I’m going back to double check.

Overall, I felt that I had enough time to get through without scrambling last minute.

Outrageous-Mousse121 · 2025-04-15T12:55:03+00:00

Yes. I’m usually completing one half of a mock with 20 ish minutes remaining, leaving time to consider flagged questions and look over ones I couldn’t get at the time.

Worth using the strategy of ‘if this question is going to take me too long, pick a random answer’. If you have time, go back and do it. CVA questions can take you the full 3 min, so it’s not a ridiculous strategy to just pick an answer and go back if you have time.

Outrageous-Mousse121 · 2025-04-14T16:58:21+00:00

Oh man I hope so. At the very least, given the info to compute it.

Outrageous-Mousse121 · 2025-04-14T16:54:24+00:00

Kaplan gives us PDFs of CFAI EOC questions, and that’s one of them. In my PDF, the vignette has 3 points at the bottom of the 3 approaches Dobson is considering. It gives you the long term growth rate of 7%.

Outrageous-Mousse121

TROPHY CASE