is economic surplus covered this year? if so, i completely missed it.
I missed that too. I don’t think it’s covered, but it could easily be buried in the CFAI text somewhere…
isn’t it just MV(assets) - MV(liabilities)?
yeah. think so. MV(assets)-PV(liabilities). i don’t remember seeing it anywhere… what about the hurdle rate? i got it mixed up with the incentive fee. don’t remember seeing that either.
Yeah, I didn’t see hurdle rate anywhere else. Didn’t they define it as the required return by the investor? If so, that’s kind of vague, no?
Which question # was the hurdle rate ?
it was six questions about hedge funds. it asked flat out, what is a hurdle rate? then the second question was also related to the hurdle rate.
sterling76 Wrote: ------------------------------------------------------- > Yeah, I didn’t see hurdle rate anywhere else. > Didn’t they define it as the required return by > the investor? If so, that’s kind of vague, no? yeah. the minimum rate required by the investor… the it asked why it was so low. it was because the hedge fund has a low correlation with equity so the return didn’t need to be high. which is horsesht.
Yeah, but its CFAI horsesht which we have to shovel…
agreed. but not in this year’s curriculum, correct?
Well I haven’t seen it… in Schweser. Who the heck knows!? At least we know what it is just in case!
true. i just hate getting things wrong on an exam and then not knowing for sure whether it’s relevant or not… it throws me completely off.
If it is relevant, it’s probably some obscure detail. There’s always going to be some obscure stuff tested, but there’s no need to focus on it. Also, obscurities tested in one year are probably unlikely to show up again anytime soon.
if you take that fixed income vignette with the economic surplus out and the hurdle rate, stuff, i probably didn’t do too badly. still have 2 more questions to do… 2008 probably next week. not looking forward to it.
Our Schweser instructor suggested we leave the CFAI AM exams until the end so the freshest thing in our minds going into the exams is the actual CFAI exams. Sounds reasonable. I did 2006 but I think I’ll save 2007 and 2008 until the week of the exam to deflate myself right before I walk into the testing center.
Don’t forget about the “snake-bite”, “house money” and “trying to break even” effects. Pretty sure those aren’t covered either, although their names speak for themselves.
yeah, i actually got those behavioural questions right. never heard of snake bite either…
sterling76 Wrote: ------------------------------------------------------- > Our Schweser instructor suggested we leave the > CFAI AM exams until the end so the freshest thing > in our minds going into the exams is the actual > CFAI exams. Sounds reasonable. I did 2006 but I > think I’ll save 2007 and 2008 until the week of > the exam to deflate myself right before I walk > into the testing center. i’ve only got 2008 left. i thought 2007 was pretty good practice…
guys, I just finished AM exams and found that on 2007 and 2006, there were too many q on individual and institutional wealth management. In 2008, there were only two. I was wondering what will be on 2009- more may be ? Thoughts…
what about this trade execution question? they are for slightly different costs. not really implementation shortfall costs… now i’m just whining. derswap, if i had to bet, i would guess that this year’s will be heavy on both individual and institutional mgmt.