what are the chances that the test will ask us to calculate the market index allocation using the the Treynor Black methodology? do people know this by heart? it is a lot to memorize!
is it on any of the past exams?
there is a note on page 523. no formulas.
the stalla passmaster makes it a big deal, using the TBM to solve for the optimal weight of the market index.
TB was on a past exam, but the quantitative portion of TB was removed due to the number of complaints (from what I recall). I wouldn’t bother memorizing the formula, unless it helps you understand the concept better.