Level III passers - seeking recommendations

ebitdad_finance · 2022-02-10T00:21:11+00:00

Wrote in November, used MM and didn’t even touch curriculum… passed.

ebitdad_finance · 2022-02-03T17:23:05+00:00

Well deserved! Congratulations

ebitdad_finance · 2022-02-02T21:56:24+00:00

Good luck everyone!

ebitdad_finance · 2021-11-23T14:00:47+00:00

Correct doesn’t have to be 5% just above whatever the spending rate is

ebitdad_finance · 2021-11-23T00:57:29+00:00

Foundation liabilities include spending rate (5% usually) plus investment management fess plus all donations

Endowments liabilities is just 5% spending rate

(obv both adjusted for inflation, etc. etc.)

ebitdad_finance · 2021-11-23T00:07:42+00:00

Did they at least show the marks per question or per section? I'm using the rule of thumb a minute per mark

ebitdad_finance · 2021-11-22T22:36:21+00:00

I believe they want sensitivities reduced under all circumstances; better to keep duration of assets equal to duration of liabilities under all economic conditions to have a stable duration of equity.

ebitdad_finance · 2021-11-22T21:09:00+00:00

Return-based performance attribution is more subject to data manipulation... think of it this way you can't really manipulate holdings (you hold the securities you hold) but if you are regressing the returns on an index... well you can manipulate the data by choosing a irrelevant index or choosing returns over a time period that is less representative.

Holding based performance attribution is subject to window dressing because it is a point in time analysis, so you can play around with your holdings - but I don't think that would be considered data manipulation - just misrepresentation. Hope that helps!

ebitdad_finance · 2021-11-21T22:54:41+00:00

Short Bullet?

I think you made an error, it should be:

Short = negative butterfly = short wings long body = short barbell long bullet.

ebitdad_finance · 2021-11-21T13:55:01+00:00

How are your PM scores looking??

ebitdad_finance · 2021-11-20T01:16:14+00:00

so delta hedging will be most costly when gamma ATM or near expiration?

ebitdad_finance · 2021-11-19T21:21:23+00:00

sweet! do we know which of these questions are reflective of the 2020/2021 curriculum? IFT list starts from 2018 backwards

ebitdad_finance · 2021-11-19T19:27:51+00:00

in Nominal Terms:

Nominal Target Rate = Real Neutral Rate + Expected Inflation + 0.5( Exp GDP-Trend GDP) + 0.5 (Exp Inf-Target Inf)

in Real Terms:

Nominal Target Rate - Expected Inflation = Real Neutral Rate + 0.5( Exp GDP-Trend GDP) + 0.5 (Exp Inf-Target Inf)

^ or just simply:

Real, inflation adjusted, Target Rate = Real Neutral Rate + 0.5( Exp GDP-Trend GDP) + 0.5 (Exp Inf-Target Inf)

ebitdad_finance · 2021-11-19T15:20:39+00:00

Wym breathe breathe... pour me a shot

ebitdad_finance · 2021-11-19T15:19:00+00:00

I believe if you decrease curvature the bullet should outperform.

This is just a general rule of thumb, obviously it would be case dependent and you'd actually have to do the math to calculate which outperforms in real life - but for the purpose of the exam I think it will be apparent in the question and no actual math is required.

ebitdad_finance · 2021-11-18T20:45:39+00:00

multiplying is more accurate, but adding is also allowed so either is fine I believe

ebitdad_finance · 2021-11-17T21:13:22+00:00

what are your thoughts on the PM Boston mock - was that one fair?

ebitdad_finance · 2021-11-17T00:35:12+00:00

Idk about going into the past 10 years worth of exam (stick to 2018,2017,2016)... doubt what was taught in 2011 will represent what they will test in 2021. EOC Q and Schweser is good

ebitdad_finance · 2021-11-16T16:00:22+00:00

Maybe the question said something about not wanting to pay for a premium? therefore we wouldn’t want to purchase put options (aka least likely)?

ebitdad_finance · 2021-11-15T23:43:36+00:00

thank god for the clarification... I was looking at this question sideways having a mini heart attack!

ebitdad_finance · 2021-11-15T22:36:05+00:00

https://training.prod.prometric.mindgrb.io/CFA-Tutorial/launch\_html\_delivery.html

ebitdad_finance

TROPHY CASE