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*Spoiler* Schweser Volume 1 First AM Exam

Did anyone catch this?

Question 4, third statement where the manager states that her portfolio returns are calculated quarterly. I answered this as “accurate” but schweser states that portfolio returns are calculated monthly, and goes on to say that composite returns are calculated quarterly.

So am I seeing this right? Up until 2010 portfolio returns monthly, whereas composites quarterly, and then 2010 both returns calculated monthly?

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partial yup.

Standard 2.A.6. “For periods begin Jan 2006, firms must calc composite rtns by asset-weighting the indiv portfolio rtns at least quarterly. For period beginning Jan 2010, composite rtns must be calc by asset weighting the indiv portfolio rtns at least monthly.”

[recommendation is to calc composite rtns at least monthly starting now]

Standard 1.A.3. Portfolio Valuation - At least monthly until Jan 2010, and then on date of all large external cash flows from Jan 2010 onwards.

Well, I don’t see how I’m wrong then.

After Jan 2010, composite rtns calc monthly, but portfolio rtns calc on date of large external cash flows.

PhillyBanker Wrote:
——————————————————-
> Up until 2010 portfolio
> returns monthly, whereas composites quarterly, and
> then 2010 both returns calculated monthly?