markCFAIL Wrote:
——————————————————-
> I am kinda annoyed that the afternoon doesn’t have
> descriptive answers like the morning. I feel like
> i got taken. You want descriptions? $100 more
> please.
>
> Based on their advertising i thought the online
> thing was just a more detailed walk-through of all
> the concepts, not the actual answer summaries that
> are provided in every single other schweser test
> i’ve had so far.
didnt know that the answer descriptions showed up when you keyed em in, oops! Damn ethics….
Paraguay Wrote:
——————————————————-
> 83% on AM session. Core capital killed me
> otherwise it would have been a lot better.
>
> I am still not 100% with the terminology on that
> question and if it is even correct. They gave the
> desired real spending amount. So the discount
> should have been at the full nominal rate.
> Increase at 1.03 for inflation divide by 1.05 or
> 1.03/1.05 ~.981 real discount rate. They
> multiplied by inflation and still divided by the
> real risk free rate of 1.02. I really need to
> reread that portion. It is on every Schweser mock
> and the way they write it is completely different
> to the book.
Paraguay, I salute your ability to keep at it inspite of the level you have scored.
About your point above– While it seems like the spending is inflation adjusted, it is NOT, they are actually ratcheting up their life-style. So, it is still real spending amounts NOT inflation adjusted! It looks confusing because lifestyle spending increase is same as inflation%!
Will report back with Scores, but was a lot better than the poorly written BSAS!
jbaphna Wrote:
——————————————————-
> Paraguay Wrote:
> ————————————————–
> —–
> > 83% on AM session. Core capital killed me
> > otherwise it would have been a lot better.
> >
> > I am still not 100% with the terminology on
> that
> > question and if it is even correct. They gave
> the
> > desired real spending amount. So the discount
> > should have been at the full nominal rate.
> > Increase at 1.03 for inflation divide by 1.05
> or
> > 1.03/1.05 ~.981 real discount rate. They
> > multiplied by inflation and still divided by
> the
> > real risk free rate of 1.02. I really need to
> > reread that portion. It is on every Schweser
> mock
> > and the way they write it is completely
> different
> > to the book.
>
>
> Paraguay, I salute your ability to keep at it
> inspite of the level you have scored.
>
> About your point above– While it seems like the
> spending is inflation adjusted, it is NOT, they
> are actually ratcheting up their life-style. So,
> it is still real spending amounts NOT inflation
> adjusted! It looks confusing because lifestyle
> spending increase is same as inflation%!
>
> Will report back with Scores, but was a lot better
> than the poorly written BSAS!
Thanks, I am actually glad I flopped this question and everyone explained it so well if it shows up on the real exam I understand all the nuances.
Those 95 year old geriatrics are well known for their increased spending.
mcap11 Wrote:
——————————————————-
> there is NO WAY you can complete question 1A in 9
> minutes - that was ridiculous
>
> it was a reality check for me - time to buckle
> down.
>
> i did poorly on the last year for Lvl 2 and
> thought it was much harder than the actual exam,
> so i am trying to stay positive
>
> i thought they over did it with SS#4 questions,
> seemed like 50% of the exam was from that SS
>
> in the PM I thought the ethics portions were
> poorly worded
>
> still think it was worth the $50
I wouldn’t worry about that one. CFAI may have a hard return calc, but you will be able to do it within the allotted time.
Wouldve been higher in pm if not for the nasty ethics. PM appeared too easy honestly and alot of sections were left out. Could be murder on June 4th nevertheless.
wake2000 Wrote:
——————————————————-
> AM 76
> PM 82
>
> Wouldve been higher in pm if not for the nasty
> ethics. PM appeared too easy honestly and alot of
> sections were left out. Could be murder on June
> 4th nevertheless.
I think you are well prepared. Performance from 402 submissions is still 64% average.
feel a little better after seeing that some people struggled as much as i did. dont have the exact numbers in front of me, but rougly:
AM~70%
PM~65%
Thought PM was really tough - ethics and some others that I almost feel like I misinterpreted the question. Or, I thought they were trying to be tricky on some cases and they were not.
Example: Last set in PM - asking if comment 1 and 2 are correct/incorrect. Comment #2 reads that “currency risk will be diversified away in a large portfolio of foreign stocks.” I agree that there is a diversification benefit here, but my first reaction was to think that not ALL of the currency risk will be eliminated…so i said incorrect.
Paraguay Wrote:
——————————————————-
> jbaphna Wrote:
> ————————————————–
> —–
> > :-)
> >
> > Re: question 3 B. Answer key says:
> > $3,700,000(1 + R)7(1 − Toi)(1 − Tg)
> =
> > $3,000,000
> > $3,700,000(1 + R)7(0.60)(0.75) = $3,000,000
> >
> > Can someone explain why there is 25% tax over
> and
> > above the 40%?
>
> Gift Tax.
I got this problem wrong too. Not sure I entirely agree with it. I think we should be accounting for the annual 36k (21.6k after tax) in royalties and 39k in annual gifts. So that would mean an annual payment of -17.4k.
I forgot to account for the gift tax since he is gifting 6.67m (3/.6*.75) in 7 years.
All told, I think the actual return should be: PMT: -17.4, FV= 6667mm, PV=3700, N=7, CPT I/Y = ~8.41%
CFABLACKBELT Wrote:
——————————————————-
> Paraguay Wrote:
> ————————————————–
> —–
> > jbaphna Wrote:
> >
> ————————————————–
>
> > —–
> > > :-)
> > >
> > > Re: question 3 B. Answer key says:
> > > $3,700,000(1 + R)7(1 − Toi)(1 −
> Tg)
> > =
> > > $3,000,000
> > > $3,700,000(1 + R)7(0.60)(0.75) = $3,000,000
> > >
> > > Can someone explain why there is 25% tax
> over
> > and
> > > above the 40%?
> >
> > Gift Tax.
>
> I got this problem wrong too. Not sure I entirely
> agree with it. I think we should be accounting
> for the annual 36k (21.6k after tax) in royalties
> and 39k in annual gifts. So that would mean an
> annual payment of -17.4k.
>
> I forgot to account for the gift tax since he is
> gifting 6.67m (3/.6*.75) in 7 years.
>
> All told, I think the actual return should be:
> PMT: -17.4, FV= 6667mm, PV=3700, N=7, CPT I/Y =
> ~8.41%
I believe the problem said the 13k gifts were made out of the taxable account not the tax deferred account.
“He takes three $13,000 annual gifts out of earnings on his taxable investment portfolio and plans to continue these annual gifts until his death.”
Problem also stated he would no longer be adding to the TDA.
Actually, on question 1, did anyone else get a slightly different return requirement because they did the (1+inflation)*(1+real return) instead of adding it? I am just assuming that would be okay.
And same thing on the core capital, I think it’s okay to be slightly off the answer because you do the geometric calc instead of the arithmetic. I went:
Real risk free = (1+nominal risk free)/(1+inflation), which results in a number slightly lower than 2% (1.94%)
K finally graded morning. 70.66% versus 77.66% afternoon. Made alot of stupid mistakes like not writing “long” on the futures contracts necessary to hedge a position.
I gave myself full credit on the core capital problem though my #’s were a bit different because i used the exact method of 1+nominal/1+inflation to get the real rate versus nominal minus inflation. Doubt it would make me lose points.
Lol i didn’t read the post above this until after I posted, thats ironic.
markCFAIL Wrote:
——————————————————-
> K finally graded morning. 70.66% versus 77.66%
> afternoon. Made alot of stupid mistakes like not
> writing “long” on the futures contracts necessary
> to hedge a position.
>
> I gave myself full credit on the core capital
> problem though my #’s were a bit different because
> i used the exact method of 1+nominal/1+inflation
> to get the real rate versus nominal minus
> inflation. Doubt it would make me lose points.
>
> Lol i didn’t read the post above this until after
> I posted, thats ironic.
I gave myself 2 points on that question for discounting by the nominal RFR. I was kind of wondering what CFAi would give. If you work a 6 step problem completely wrong based on one number.
lhskev Wrote:
——————————————————-
> Does everyone agree with the answer for Q53?
>
> It stated that the style fit was 93%; therefore
> the portfolio was passively managed.
Is there a rule to follow on this? On the CFAI 2007 morning exam, they say 88% style fit means a portfolio is actively managed
This was one of my questions too…. I was wondering what the magic number is to consider it active. In my mind 7% is still active, meh.
Paraguay: I would tend to think (though really have no clue, just guessing) that if you just made that one mistake, the graders wouldn’t be as critical as Schweser mandates. But who knows.
I’ve been marking these fairly, perhaps even on the harsh side. To be honest I’ve found them so far easier than I imagined, the hardest part being where Schweser aren’t clear about something. The CFA past papers have been far more clear on what they’re talking about IMO.
Plenty plenty plenty left to do before exam day. I plan on constructing my own fake paper made up of all the things I really don’t want to deal with on exam day and do that. Hopefully will give some additional confidence.
Unilever Wrote:
——————————————————-
> Schweser Mock 1
>
> AM: 73%
> PM: 70%
>
> Schweser Mock 2
>
> AM: 75%
> PM: 72%
>
> ———————————
>
> I’ve been marking these fairly, perhaps even on
> the harsh side. To be honest I’ve found them so
> far easier than I imagined, the hardest part being
> where Schweser aren’t clear about something. The
> CFA past papers have been far more clear on what
> they’re talking about IMO.
>
> Plenty plenty plenty left to do before exam day. I
> plan on constructing my own fake paper made up of
> all the things I really don’t want to deal with on
> exam day and do that. Hopefully will give some
> additional confidence.
pfcfaataf Wrote:
——————————————————-
> so I did online schweser mock today,
>
> AM: 76 %, Taxes killed me, but I do not really
> care
> PM: 85 %, for one question I thought correct
> answer is A and chose C (number 60)
Good score, how did Ethics go?
I still think Ethics blew. but it could be my bias of getting 3/12.
AM 71%
PM 65% (got crushed in Ethics)
Pretty sure there was an error in the morning exam. Q 7B ii)
You can go to schwesermock.com to get the detailed answers for afternoon exam.
there is NO WAY you can complete question 1A in 9 minutes - that was ridiculous
it was a reality check for me - time to buckle down.
i did poorly on the last year for Lvl 2 and thought it was much harder than the actual exam, so i am trying to stay positive
i thought they over did it with SS#4 questions, seemed like 50% of the exam was from that SS
in the PM I thought the ethics portions were poorly worded
still think it was worth the $50
“Believe deep down in your heart that you’re destined to do great things.”
68/73 AM/PM for me…
Yea I got owned on the ethics :P
The morning was decent and compared to the BSAS this was a MUCH better test
Two things which will probably make the diff between a pass and fail.
READ THE #%$!&^# QUESTION **CAREFULLY**
Don’t make any silly calculation errors.
The above two alone cost me about 4-5 answers in the PM today.
I actually thought that BSAS had way too many errors. Have emailed them about it.
markCFAIL Wrote:
——————————————————-
> I am kinda annoyed that the afternoon doesn’t have
> descriptive answers like the morning. I feel like
> i got taken. You want descriptions? $100 more
> please.
>
> Based on their advertising i thought the online
> thing was just a more detailed walk-through of all
> the concepts, not the actual answer summaries that
> are provided in every single other schweser test
> i’ve had so far.
didnt know that the answer descriptions showed up when you keyed em in, oops! Damn ethics….
Paraguay Wrote:
——————————————————-
> 83% on AM session. Core capital killed me
> otherwise it would have been a lot better.
>
> I am still not 100% with the terminology on that
> question and if it is even correct. They gave the
> desired real spending amount. So the discount
> should have been at the full nominal rate.
> Increase at 1.03 for inflation divide by 1.05 or
> 1.03/1.05 ~.981 real discount rate. They
> multiplied by inflation and still divided by the
> real risk free rate of 1.02. I really need to
> reread that portion. It is on every Schweser mock
> and the way they write it is completely different
> to the book.
Paraguay, I salute your ability to keep at it inspite of the level you have scored.
About your point above– While it seems like the spending is inflation adjusted, it is NOT, they are actually ratcheting up their life-style. So, it is still real spending amounts NOT inflation adjusted! It looks confusing because lifestyle spending increase is same as inflation%!
Will report back with Scores, but was a lot better than the poorly written BSAS!
jbaphna Wrote:
——————————————————-
> Paraguay Wrote:
> ————————————————–
> —–
> > 83% on AM session. Core capital killed me
> > otherwise it would have been a lot better.
> >
> > I am still not 100% with the terminology on
> that
> > question and if it is even correct. They gave
> the
> > desired real spending amount. So the discount
> > should have been at the full nominal rate.
> > Increase at 1.03 for inflation divide by 1.05
> or
> > 1.03/1.05 ~.981 real discount rate. They
> > multiplied by inflation and still divided by
> the
> > real risk free rate of 1.02. I really need to
> > reread that portion. It is on every Schweser
> mock
> > and the way they write it is completely
> different
> > to the book.
>
>
> Paraguay, I salute your ability to keep at it
> inspite of the level you have scored.
>
> About your point above– While it seems like the
> spending is inflation adjusted, it is NOT, they
> are actually ratcheting up their life-style. So,
> it is still real spending amounts NOT inflation
> adjusted! It looks confusing because lifestyle
> spending increase is same as inflation%!
>
> Will report back with Scores, but was a lot better
> than the poorly written BSAS!
Thanks, I am actually glad I flopped this question and everyone explained it so well if it shows up on the real exam I understand all the nuances.
Those 95 year old geriatrics are well known for their increased spending.
:-)
Re: question 3 B. Answer key says:
$3,700,000(1 + R)7(1 − Toi)(1 − Tg) = $3,000,000
$3,700,000(1 + R)7(0.60)(0.75) = $3,000,000
Can someone explain why there is 25% tax over and above the 40%?
jbaphna Wrote:
——————————————————-
> :-)
>
> Re: question 3 B. Answer key says:
> $3,700,000(1 + R)7(1 − Toi)(1 − Tg) =
> $3,000,000
> $3,700,000(1 + R)7(0.60)(0.75) = $3,000,000
>
> Can someone explain why there is 25% tax over and
> above the 40%?
Gift Tax.
mcap11 Wrote:
——————————————————-
> there is NO WAY you can complete question 1A in 9
> minutes - that was ridiculous
>
> it was a reality check for me - time to buckle
> down.
>
> i did poorly on the last year for Lvl 2 and
> thought it was much harder than the actual exam,
> so i am trying to stay positive
>
> i thought they over did it with SS#4 questions,
> seemed like 50% of the exam was from that SS
>
> in the PM I thought the ethics portions were
> poorly worded
>
> still think it was worth the $50
I wouldn’t worry about that one. CFAI may have a hard return calc, but you will be able to do it within the allotted time.
Paraguay Wrote:
——————————————————-
> > Can someone explain why there is 25% tax over and above the 40%?
>
> Gift Tax.
Ah! thanks– stupid mistake– NOTE to self– move cautiously, read the Question! Think!
Scores:
Schweser Mock Exam AM 80%
Schweser Mock Exam PM 78%
BSAS was really bad:
BSAS Mock Exam AM 57%
BSAS Mock Exam PM 62%
Do others see such wide variability? I just don’t know where I stand !?
AM 76
PM 82
Wouldve been higher in pm if not for the nasty ethics. PM appeared too easy honestly and alot of sections were left out. Could be murder on June 4th nevertheless.
Does everyone agree with the answer for Q53?
It stated that the style fit was 93%; therefore the portfolio was passively managed.
wake2000 Wrote:
——————————————————-
> AM 76
> PM 82
>
> Wouldve been higher in pm if not for the nasty
> ethics. PM appeared too easy honestly and alot of
> sections were left out. Could be murder on June
> 4th nevertheless.
I think you are well prepared. Performance from 402 submissions is still 64% average.
where do you see the overall average results? where is it on the site?
“Believe deep down in your heart that you’re destined to do great things.”
mcap11 Wrote:
——————————————————-
> where do you see the overall average results?
> where is it on the site?
Click on mock exam, review exam, performance tracker.
feel a little better after seeing that some people struggled as much as i did. dont have the exact numbers in front of me, but rougly:
AM~70%
PM~65%
Thought PM was really tough - ethics and some others that I almost feel like I misinterpreted the question. Or, I thought they were trying to be tricky on some cases and they were not.
Example: Last set in PM - asking if comment 1 and 2 are correct/incorrect. Comment #2 reads that “currency risk will be diversified away in a large portfolio of foreign stocks.” I agree that there is a diversification benefit here, but my first reaction was to think that not ALL of the currency risk will be eliminated…so i said incorrect.
Paraguay Wrote:
——————————————————-
> jbaphna Wrote:
> ————————————————–
> —–
> > :-)
> >
> > Re: question 3 B. Answer key says:
> > $3,700,000(1 + R)7(1 − Toi)(1 − Tg)
> =
> > $3,000,000
> > $3,700,000(1 + R)7(0.60)(0.75) = $3,000,000
> >
> > Can someone explain why there is 25% tax over
> and
> > above the 40%?
>
> Gift Tax.
I got this problem wrong too. Not sure I entirely agree with it. I think we should be accounting for the annual 36k (21.6k after tax) in royalties and 39k in annual gifts. So that would mean an annual payment of -17.4k.
I forgot to account for the gift tax since he is gifting 6.67m (3/.6*.75) in 7 years.
All told, I think the actual return should be: PMT: -17.4, FV= 6667mm, PV=3700, N=7, CPT I/Y = ~8.41%
CFABLACKBELT Wrote:
——————————————————-
> Paraguay Wrote:
> ————————————————–
> —–
> > jbaphna Wrote:
> >
> ————————————————–
>
> > —–
> > > :-)
> > >
> > > Re: question 3 B. Answer key says:
> > > $3,700,000(1 + R)7(1 − Toi)(1 −
> Tg)
> > =
> > > $3,000,000
> > > $3,700,000(1 + R)7(0.60)(0.75) = $3,000,000
> > >
> > > Can someone explain why there is 25% tax
> over
> > and
> > > above the 40%?
> >
> > Gift Tax.
>
> I got this problem wrong too. Not sure I entirely
> agree with it. I think we should be accounting
> for the annual 36k (21.6k after tax) in royalties
> and 39k in annual gifts. So that would mean an
> annual payment of -17.4k.
>
> I forgot to account for the gift tax since he is
> gifting 6.67m (3/.6*.75) in 7 years.
>
> All told, I think the actual return should be:
> PMT: -17.4, FV= 6667mm, PV=3700, N=7, CPT I/Y =
> ~8.41%
I believe the problem said the 13k gifts were made out of the taxable account not the tax deferred account.
“He takes three $13,000 annual gifts out of earnings on his taxable investment portfolio and plans to continue these annual gifts until his death.”
Problem also stated he would no longer be adding to the TDA.
I think it was correct.
Actually, on question 1, did anyone else get a slightly different return requirement because they did the (1+inflation)*(1+real return) instead of adding it? I am just assuming that would be okay.
And same thing on the core capital, I think it’s okay to be slightly off the answer because you do the geometric calc instead of the arithmetic. I went:
Real risk free = (1+nominal risk free)/(1+inflation), which results in a number slightly lower than 2% (1.94%)
Someone please tell me they did the same thing…
K finally graded morning. 70.66% versus 77.66% afternoon. Made alot of stupid mistakes like not writing “long” on the futures contracts necessary to hedge a position.
I gave myself full credit on the core capital problem though my #’s were a bit different because i used the exact method of 1+nominal/1+inflation to get the real rate versus nominal minus inflation. Doubt it would make me lose points.
Lol i didn’t read the post above this until after I posted, thats ironic.
markCFAIL Wrote:
——————————————————-
> K finally graded morning. 70.66% versus 77.66%
> afternoon. Made alot of stupid mistakes like not
> writing “long” on the futures contracts necessary
> to hedge a position.
>
> I gave myself full credit on the core capital
> problem though my #’s were a bit different because
> i used the exact method of 1+nominal/1+inflation
> to get the real rate versus nominal minus
> inflation. Doubt it would make me lose points.
>
> Lol i didn’t read the post above this until after
> I posted, thats ironic.
I gave myself 2 points on that question for discounting by the nominal RFR. I was kind of wondering what CFAi would give. If you work a 6 step problem completely wrong based on one number.
lhskev Wrote:
——————————————————-
> Does everyone agree with the answer for Q53?
>
> It stated that the style fit was 93%; therefore
> the portfolio was passively managed.
Is there a rule to follow on this? On the CFAI 2007 morning exam, they say 88% style fit means a portfolio is actively managed
This was one of my questions too…. I was wondering what the magic number is to consider it active. In my mind 7% is still active, meh.
Paraguay: I would tend to think (though really have no clue, just guessing) that if you just made that one mistake, the graders wouldn’t be as critical as Schweser mandates. But who knows.
63 - AM
67 - PM
Studying as much as possible for the next 12 days…
Schweser Mock 1
AM: 73%
PM: 70%
Schweser Mock 2
AM: 75%
PM: 72%
———————————
I’ve been marking these fairly, perhaps even on the harsh side. To be honest I’ve found them so far easier than I imagined, the hardest part being where Schweser aren’t clear about something. The CFA past papers have been far more clear on what they’re talking about IMO.
Plenty plenty plenty left to do before exam day. I plan on constructing my own fake paper made up of all the things I really don’t want to deal with on exam day and do that. Hopefully will give some additional confidence.
Unilever Wrote:
——————————————————-
> Schweser Mock 1
>
> AM: 73%
> PM: 70%
>
> Schweser Mock 2
>
> AM: 75%
> PM: 72%
>
> ———————————
>
> I’ve been marking these fairly, perhaps even on
> the harsh side. To be honest I’ve found them so
> far easier than I imagined, the hardest part being
> where Schweser aren’t clear about something. The
> CFA past papers have been far more clear on what
> they’re talking about IMO.
>
> Plenty plenty plenty left to do before exam day. I
> plan on constructing my own fake paper made up of
> all the things I really don’t want to deal with on
> exam day and do that. Hopefully will give some
> additional confidence.
I like this idea.
Soddy1979, CFA
so I did online schweser mock today,
AM: 76 %, Taxes killed me, but I do not really care
PM: 85 %, for one question I thought correct answer is A and chose C (number 60)
pfcfaataf Wrote:
——————————————————-
> so I did online schweser mock today,
>
> AM: 76 %, Taxes killed me, but I do not really
> care
> PM: 85 %, for one question I thought correct
> answer is A and chose C (number 60)
Good score, how did Ethics go?
I still think Ethics blew. but it could be my bias of getting 3/12.
2 wrong of 12
but in other cases (sample 1 CFAI) it is more like 4/12
this level Ethics seem harder to me
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