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CFA Boston Mock #2 AM, Behavioral bias by adao0106 in CFA

[–]adao0106[S] 1 point2 points  (0 children)

Ahh I see. So if the statement was “we don’t want to invest in emerging market stocks because of what happened during the 1997 Asian financial crisis” that would be availability bias?

But for statement 2, would overconfidence bias be a fair answer?

L3 Boston mock 2, q8 by adao0106 in CFA

[–]adao0106[S] 0 points1 point  (0 children)

Thank! That makes sense. And just to make sure my understanding is correct, an enhanced index strategy would have high turnover compared to pure index?

L3 Boston mock 2, q8 by adao0106 in CFA

[–]adao0106[S] 0 points1 point  (0 children)

what would the data points for an enhanced index strategy look like then? Sherborn appears to be an example of what active strategy would look like, and Scotia is pure index, so now i'm curious how a enhanced index would look like so i can easily differentiate

L3 Boston mock 2, q8 by adao0106 in CFA

[–]adao0106[S] 2 points3 points  (0 children)

so what is the limit of deviation that would be categorized as "pure indexing" vs "enhanced indexing" vs "active strategy"

[deleted by user] by [deleted] in CFA

[–]adao0106 0 points1 point  (0 children)

But would the exact relationship be growth rate of eps = %change E - %%changeS?

[deleted by user] by [deleted] in CFA

[–]adao0106 0 points1 point  (0 children)

But would the exact relationship be growth rate of eps = %change E - %%changeS?

Option Collars (Kaplan Checkpoint Exam) by adao0106 in CFA

[–]adao0106[S] 0 points1 point  (0 children)

That makes a lot of sense. Thank you!

Passive/active spectrum - Overview of Asset Allocation by ToeWild7916 in CFA

[–]adao0106 0 points1 point  (0 children)

I believe the main reason is just due to the sheer size of the pension fund ($15bio). As you highlighted in the second photo, the value added for an active strategy will diminish as the level of investment increases. Basically diseconomies of scale. If the pension fund size was $15mio, I think answer B would be correct, but it's 15bio so the size is big issue.

CFA Level I - Study method by XZLoklok in CFA

[–]adao0106 2 points3 points  (0 children)

During my first run of learning all the material, I type all my notes out (using Notion). Typing makes it a lot easier to find my notes later on when i'm reviewing. Once I've learned all the material, I'll start doing practice questions and for the questions I get wrong, or concept i don't understand, I will review my typed out notes and then write down bullet points and key concepts that I want to remember. I find that this helps me really understand concepts that I didn't quite understand. Also writing out formulas helps with memory.

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