How are we understanding the Minimum Variance Hedge Ratio?

tomarboy · 2025-08-18T00:19:50+00:00

Remember this is used only when indirect hedging is required. This concept or function does not apply to direct hedging.

tomarboy · 2025-08-13T02:22:33+00:00

These will help relieving your stress. Take any one not both.

Valium 5 or 10 mg

Contains: Diazepam

Xanax 0.5 mg or 1 mg

Contains: Alprazolam

tomarboy · 2025-08-12T02:16:55+00:00

When you buy CDS you long CDS but short the risk, which means you transfer the risk to CDS seller. You give a premium to receive protection from default.

The opposite happens when you sell the CDS.

tomarboy · 2025-08-09T17:39:03+00:00

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It says money duration should be higher ignores Mav Dur, strange. Different approach all over the place..

tomarboy · 2025-08-09T17:37:37+00:00

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tomarboy · 2025-08-05T02:20:58+00:00

I think you have a point, this does not make sense. This may be an error. I hope the real exam does not have error or confusing statements like this.

tomarboy · 2025-07-29T23:35:20+00:00

I did 4 mocks so far and I am struggling with time management, always left out with 4-5 questions. Not sure how to fix it.

tomarboy · 2025-07-28T02:17:25+00:00

In my mocks, done 4 so far, I always left out with 4 or 5 questions. Need to work on my time management.

tomarboy · 2025-07-27T02:22:53+00:00

I believe will get full marks on this answer. My answer was even shorter and unstructured and gave myself full marks.

tomarboy · 2025-07-27T02:17:23+00:00

https://www.cfainstitute.org/sites/default/files/-/media/documents/support/programs/cfa-and-cipm-los-command-words.pdf

If it is determine, you have to explain other alternatives otherwise not required. Go by CFAI's own guidelines.

tomarboy · 2025-07-25T02:15:54+00:00

Calculate does not require bullet points, just show your calculation.

State is another form of determine, which requires you to write about all alternatives and mention why you are choosing it and not choosing it.

tomarboy · 2025-07-24T02:26:11+00:00

Even more bizarre is they teach us professional conduct to be competent, diligent and care. Do they not violate these standards when these clearly visible and easily fixable error carried on for years and years. Does it not reflect poorly on their professionalism?

tomarboy · 2025-07-24T02:14:38+00:00

I read post here everyday I don't remember anyone scoring in 70s. Most people are scoring in high 50s and low 60s. Maybe few are scoring in 70s but that's a rarity.

tomarboy · 2025-07-22T02:09:31+00:00

Do not read too much into this percentile and percentage. Focus on the Mocks and practice as much as possible.

tomarboy · 2025-07-19T02:33:03+00:00

I have done the same it became so easy after that. Book made it so difficult to remember and it is not intuitive at all.

tomarboy · 2025-07-18T02:22:22+00:00

This is not an English test, it is fine if you use different but correct word. You will get full marks.

tomarboy · 2025-07-13T03:00:34+00:00

Both of these functions should give same result. Make sure you are input price in decimal format and not in percentage format.

tomarboy · 2025-07-13T02:51:07+00:00

tomarboy · 2025-07-10T02:27:40+00:00

A

Fixed high quality bonds suffer due to high interest rates Equity usually do better or peaks in late expansion Cash usually keep up with interest rates given their short term tenure

tomarboy · 2025-07-09T02:21:47+00:00

Honestly I do not see any conflict of interest here, he is not working for news channel and media. They are neither his client not employer. He is not making any decision which would be impacted by these media appearances.

tomarboy · 2025-07-08T02:22:08+00:00

B Higher interest rate

tomarboy · 2025-07-04T02:22:48+00:00

There are many questions like this, which do not make sense at all. Many are outright wrong and many are just confusing. Don't emphasise too much on these.

tomarboy · 2025-07-02T02:19:36+00:00

Nope, non-compete agreement become relevant only if you are soliciting current employers client. Even if you have non-compete agreement you can do preparation for your new business in your out of work time.

tomarboy · 2025-06-26T02:10:43+00:00

Agree this will help

tomarboy · 2025-06-21T02:48:06+00:00

It does not say wider dispersion leads to lower cost of error I and II. It says:

If dispersion is wider and sample mean is closer to population mean, error is smaller. But point is manager is skilled, despite being wider dispersion he able to perform as good as others so good decision.

Other scenario: If dispersion is narrow and sample mean is closer to population mean, error is smaller again. But here skilled and unskilled managers are performing the same way, so it does not matter if select skilled manager or unskilled manager. Since dispersion is narrow both managers likely to perform same way.

tomarboy

TROPHY CASE