Does the test ever require you to know what each standard is by its number? For instance do I need to have memorized that Stardard 1© is misrepresentation? I can’t remember from L2 if they ask this way or not.
seriously? Did you really pass two levels? Answer is no
Haha yeah but it was in 2008.
1morelevel Wrote: ------------------------------------------------------- > Haha yeah but it was in 2008. are you serious? If yes, CFAI is crooked!!
My memory is shot. Last night I had to relearn the difference between CML and SML.
1morelevel: Since you mentioned it, can you please clarify if the definitions below correct? What is the difference between CML vs CAL vs SML? Thanks!!! CML = Capital Market Line E® against Total Risk (SD) CAL = Capital Allocation Line E® against Total Risk (SD) Above tangent of MVF and CAL, you borrow Below tangent of MVF and CAL, you lend SML = Security Market Line E® against Beta
SML is the graph of CAPM, with Beta as the x coordinate. CML is the line that is tangent to the efficient frontier at the market portfolio. x intercept is st dev
What’s the diff b/w CML and CAL?