Anyone else find this written test extremely difficult? I have done schweser book 1 tests 1 and 2 and schweser book 2 test 1, and 2007 was WAY more difficult in my opinion. I would guestimate i have been in the 65-75% on everything up until this one where I would have been happy to get a 50%. Just curious if this is just me or anyone else also found this difficult.
Yeah…I didn’t do that well on that one either. Seems like you and me are in the same spot with the Samples and this one. I guess it’s good, since I now am way motivated and have picked up my studying pace! Usually in May I coast and just do mock/practice tests and light review. Not this year!
Yeah we are in the same boat. Second Sample = 60%…Just took it. Like you, I had always gotten 70+ on all Samples/Mocks on Level 1 and 2. This has definitely been a huge wakeup call. Glad I read your post and took the samples immediately afterwards.
In a weird sick way this sort of makes me happy, because now I see how people fail L3. Before, I couldn’t understand how people who get through L1 and L2 end up failing L3. Now I see how.
Q5: What does the following mean? CU expects a similar dollar level of endowment support, indexed to inflation in its costs, in future years. Why CPI 2.5% is not used in calculation? Thanks!
Also, Q5 Part B (ii), how to get 0.5% compound growth rate?
This endowment is set up for a University, so in effect you need the endowment to go up by university’s “inflation rate”, which is 3.25%
lzhao Wrote: ------------------------------------------------------- > Q5: > > What does the following mean? > > CU expects a similar dollar level of endowment > support, indexed to inflation in its costs, in > future years. > > Why CPI 2.5% is not used in calculation? > > Thanks! [(500 / 490)]^(1/4)-1 = 0.5%…Ending market value in 2006 was 500MM, ending market value in 2002 was 490MM
Just took this exam… man this one was tough… I have a question about the first question part A… schweser makes us seem as though the return objective is for the next year, but this question makes us find an annual return required to meet a future obligation… which one should we use?
boston, Just took this exam as well, and I have 2 conflicting thoughts on this: If I am understanding you correctly, I think the fact that they provided a 35 year time horizon, you go with that. Also, they provided a definite future value of bequest desires. Or, Could be that what Schweser leads you to believe is the new way they teach it as this test could is slightly dated. Or, 3rd thought - I could have completely misunderstood your question.
No, you did not misunderstand… It looks like these exams may just be dated… 2008 has a similar type in question 1D… I guess if I see any statement of an actual desired bequest in a set time frame, I will just calculate the return with FV, PV, PMT, N on the calc the calculations are not difficult for this stuff… its just trying to fully understand what exactly they are asking… there is just no consistency in any exam…
How does it compare with 2009 exam?