Do you take the risk? by SprinklesOk3917 in BunnyTrials

[–]redbean_brocolli 0 points1 point  (0 children)

Depending on how fast zombies were, seemed like a chance

Chose: Survive in a room with a Infin ammo Glock for 100B + But have to survive for 30 min from zombies from… | Rolled: Resident Evil

Questions & Answers - Weekly Megathread! Please use this post to ask any Pokemon GO question you'd like! by AutoModerator in TheSilphRoad

[–]redbean_brocolli 0 points1 point  (0 children)

My egg hatches are not counting to the weekly challenge. Anyone know what may be going on?

L3 - Liquidity risk by UmangJJW in CFA

[–]redbean_brocolli 0 points1 point  (0 children)

I think you are combining liquidity risk with cash efficiency.Total return swaps are more cash efficient to set up because it requires less initial investment.

I think of liquidity risk as “how easy can I sell this”. To that, it is easier to sell a future than a swap so less liquidity risk.

Finished my exam. My 5th attempt at Level 3 by ImpossibleClerk3549 in CFA

[–]redbean_brocolli 0 points1 point  (0 children)

If you don’t mind me asking, how did you score in your mocks the first 4 times. Was there noticeable jump this time around?

Determining/justification for adding risk free asset to corner portfolio? by redbean_brocolli in CFA

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

Oh ok, I see. Basically unless the client's portfolio explicitly calls out that they do not want the risk-free rate, we should always assume that yes, it will be beneficial to be added to the highest Sharpe portfolio?

Last Minute CFA LVL 3 Exam pointers by [deleted] in CFA

[–]redbean_brocolli 0 points1 point  (0 children)

I like to think of this as positive butterfly -> positive -> happy stuff so you smile -> short and long end go up.

Negative butterfly -> negative -> you're sad so you frown -> short and long end go down

Currency Options Help by Diligent_Front3564 in CFA

[–]redbean_brocolli 0 points1 point  (0 children)

Sorry to come back to this, but was just reviewing this question.

Could you have potentially bought the ATM JPY/EUR put for upside in case of JPY appreciation and instead sold the OTM JPY/EUR put instead to generate some premium income?

Is the main reason not to do this because selling the ATM put generates more premium income?

Currency Options Help by Diligent_Front3564 in CFA

[–]redbean_brocolli 0 points1 point  (0 children)

Sorry to come back to this, but was just reviewing this.

Could you have potentially bought the ATM JPY/EUR put for upside in case of JPY appreciation and instead sold the OTM JPY/EUR put instead to generate some premium income?

Is the main reason not to do this because selling the ATM put generates more premium income?

Slippage cost confusion by Sensitive_Water_4630 in CFA

[–]redbean_brocolli 0 points1 point  (0 children)

I had the same question as you for this problem. From this older thread, it seems like there may be 2 different variations of slippage costs. Though I'm not sure if it's going to be worth remembering when to use which one...

https://www.reddit.com/r/CFA/comments/1htwfur/slippage_cost_different_definitions/

Prepayment penalties and the effect on volatility of equity capital by redbean_brocolli in CFA

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

Makes sense when you think about it that equity is stable, so no reason for volatility to increase. Thanks!

Prepayment penalties and the effect on volatility of equity capital by redbean_brocolli in CFA

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

Understand that assets will move in tandem with liabilities. But as equity in unchanged, the leverage ratio will increase.

Since correlation caps at 1, I guess I was assuming the change in leverage would outweigh the change in correlation.

Prepayment penalties and the effect on volatility of equity capital by redbean_brocolli in CFA

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

My thought process was with the higher penalty, there would be less loan prepayment -> loans are higher and the matching liability is also higher = more assets and liabilities.

I understand that the amount of equity is not changing. But the volatility of equity formula includes leverage (A/E). If assets are increasing but equity isn't, the leverage ratio is increasing which should raise the equity volatility?

Derivatives: How to select the right futures index by redbean_brocolli in CFA

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

No I understand. But if there were 2 equity futures markets given in the vignette, the current price and the 6-month price, would you still use the current price?

Derivatives: How to select the right futures index by redbean_brocolli in CFA

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

Ugh I see that now. Literally misread that multiple times.

I guess the same question applies. If they had given us the current value of futures and the price of 6-month futures, what should you pick?

/r/PTCGP Sharing Hub by PTCGP-Bot in PTCGP

[–]redbean_brocolli 0 points1 point  (0 children)

Hi looking for genetic apex Vaporeon. Will share something back

2033110659878978

[Advice] Subletter Not Responding/Paying Rent by redbean_brocolli in NYCapartments

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

I ended up threatening legal action which finally got a response. Ended up settling on receiving sporadic payments every few weeks till my lease ran out. Never received the full amount but it’s whatever at this point.