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Topic 2: Introduction to Alternative Investments

Lvl 1_Option pricing model_query re important things for exam

I´m currently reading the option pricing models (ie, Black-Sholes formula, Black forward option model, etc…) I understand that the formula is given in the exam.  However, I´m confused how extensive do I need to know this topic? Do I need to remember the individual variables representing the formula? 

Return on national principal equations

Hi guys 

Could you please help me with Return on notional principal for both fully collateralized and partially collateralized , I don’t know how to implement it on the calculator

I stuck in LN function , how can I put it into the BA I calculator 

the formulas are 

Fully = LN(1+R) + Rf

Partially = [ L * LN ( 1+R)] + Rf  

thanks for your help and time 

Different formulas for Information Ratio


I have noticed that there are two formulas for the Information Ratio.

The 1st from topic 2.5 = (E(Rp) - Rbenchmark) / Tracking Error Porfolio

The 2nd from topic 4.5 = Information Coefficient * Breath^(1/2)++

Are this formula equivalent? Do they calculate the same value if we are given the correct inputs?

Thanks for your help

Study Group Level 1 CAIA March 2014

I would like to create a group for next CAIA L1 March 2014 in Geneva (Switzerland). Once a week or twice a week. Let me know if anyone is interested in forming a group.

Junior Equity Analyst

I studied Hospitality management. (huge mistake) I was a FA for 2 years and the sales aspect of the job was not for me I am not a salesman, Although I did learn a lot in these 2 years of working, I am currently studying CAIA level 1 I plan to pass in March and do level 2 by september. I know this is going to be a crazy year of studying but I need to do it. 

I am keen to move into an AI analyst position, I am doing excel modelling as a hobby, because it does seem that all job requirements, require this skill.