Level I

How's your final prep coming along!?

Just curious where others stand 3.5 weeks out. I’ve done 3 mocks with sub par scores (#1 - %50, #2 - 54%, #3 - 60%). Slowly trying to work my way up to a comfortable 70 (preferebly 75) for the last 2 or 3 mocks that I do by reviewing topics each day and doing the topic tests on CFAI website.

How are your mock scores so far? What are you doing to improve them?

Good luck us!

Retained Earnings CFF

Why is an increase in retained earnings decreased from net income to create CFF?

ETF vs. Open Ended Mutual Funds

Can someone walk me through the tax implications that make ETFs better than open ended mutual funds (from a tax perspective)?

Option Valuation for European Puts

Not sure why the lower bounds for European put valuation could be P-(x/(1+rf)^t).

More specifically, I am not sure why we have to discount the strike price. What does that represent?

Fixed Income Question

According to put-call-forward parity, if the put in a protective put with forward contract expires out of the money, the payoff is most likely equal to:

the face value of a risk-free bond.

the market value of the underlying asset.


Correct answer is B.  I know  put-call-forward parity equation is c + PV(x) = p + s.

But I still don’t know how to get the right answer. Can anyone help me on that ?

Economic Rent and Opportunity Cost

I do not get how inelastic supply curve would entirely produce economic rent, while an perfectly elastic supply curve would produce entirely opportunity cost.

Can someone explain how this works? 

Conflict of Interest violation

CFA member works for a company, but plans to manage portfolio of several family members, in exchange for a percentage of the portfolio’s profits. These portfolios require substantial attention, and thus require the CFA member’s services outside of the company he works for. CFA member notifies his employer in writing of his prospective outside employment. Two weeks later, the member begins the manage the family portfolios. 

Deferred Tax Liability

Hi Guys,

Just wondering about how a DTL turns into equity when is doesnt reverse. I don’t understand as surely this would decrease equity as it is a liability.

Anyone taking the test in Chicago?

Are there any candidates who will be going over from any one of the following areas to the Exam Center in Chicago for the June 2016 exam?
Yorkville, Oswego, Plano, Plainfield, Elburn, Aurora, Naperville
I would prefer not to drive (or take a cab) and would like to car pool, if possible.


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