why loss is unlimited for selling insurance, for example constant mix, if selling insurance, they get premium but they will pay you the amount in the insurance contract at most say 1 million for life insurance, why textbook says loss is unlimited? Continue reading
which statement about neoclassical approach to growth accounting is correct:
A. The growth in total factor productivity is not directly observable
B. The growth factors must be stated in nominal (ie not inflation-adjusted) term.
C . The total output may not growth at a rate faster than predicted by the growth in capital stock and labor force. Continue reading
Could somebody please explain the CFAI resoning for unchanged corridor width with increase in price of gold?
The question mentions forecasts for not only gold price but also for Tx cost and volatilty. Continue reading
“Revise the investment policy statement of the pension plan to take into account a
change in the [3 year] forecast for inflation in the U.K.”
True or false? Continue reading
Short-term (one month) goverment rate in canada is 1.9%, UK is 5%.
Which currency expected to be comparatively stronger? Continue reading
Schweser practice V1 third afternoon, p200 Q56, it says tax-exempt and tax
Deferred does not matter, my answer is tax exempt, because it says flat and heavy, capital gain will be heavy, and if using tax exempt, they pay less tax , if they use deferred account, the share price will increase higher and higher after
Many years till the person retires, so end up paying more tax.
So it does matter to choose tax exempt Continue reading
Schweser practice V1 third afternoon, p195 Q47, it says since we SBK pay floating, it is subjected to cash flow risk, I’m a bit confused, in swap, either we pay floating or we pay fixed, so if we pay fix, do we have cash flow risk also? If it is true, can I say in any swap, we only have cash flow risk and no price risk?
Anyone can give a example of price risk (market risk) for swap?
In Q46 enertech case, it is mentioned that they long interest rate collar,
So if we buy interest rate floor and sell cap to finance it, is called as “ short Continue reading
Schweser practice V1 third afternoon, p188 Q25, statement 1 says bond indexed enhanced approach got excess return
I would like to know is excess return equal to active return,
I remember Semi-active approach no active return, anyone can clarify?
thanks Continue reading
Schweser practice V1 third afternoon, p185 Q24, provider A got six independent variable,
Provider B got three variable, the answer says regression for provider A has high R square and provider B got low R square, why more variable can have higher value, anyone can clarify?
thanks Continue reading