I have them as: Using Ex Post Data Data Mining Conditioning Information Misinterpreting Correlation Limitations of using Economic Data Data Measurement Errors and Biases Limitations of Historical Estimates Psychological Traps Model and Input Uncertainty
Six sources of excess return from international bond investing
MCS - DIC
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Market selection
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Currency selection
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Security Selection
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Duration management
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Investing outside the relevant benchmark
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Credit analysis
Benefits of rebalancing: DD Disciplined Desired exposure
MIMC -spells Mimic almost
4 extensions to classical immunization
M ultifunctional duration (a.k.a. key rate duration).
I ncreasing risk
M ultiple-liability immunization. C ontingent immunization
Fixed Income Risks
CCI
C ontingent claim risk (call risk, prepayment risk)
C ap Risk
I nterst Rate risk
DISC CM
STR CTP
assesing the quality of the benchmark:
Systematic Bias
Tracking Error
Risk characteristics
Coverage
Turnover
Positive active positions
7 due diligence checkpoints
POORIST
P oeple
O ppertunity, market
O rganization
R eview documents
I nvestment process
S ervice providers
T erms and Structure
DIMSTOP is also cool…
arrey rahool
where is that from sherbeer? thx
Alladin its 7 due diligence points of an Alternative Asset…
ah havent reviewd that yet 
bluebox example 2 in book 4
Self Attribution is not a part of the list of Emotional Biases per the curriculum. Self Attribution comes in as a contributory bias to over confidence. So the O in LOSSER, actually comprises of the following:
H- Hindsight
A - Availability
I - Illusion of Control
R - Representativeness
I -Illusion of knowledge
S - Self Atrribution
bohot bol rahe ho beta rahool
Analyst forecasts: CAN’T MISS IT.
ROM
Biased R esearch O verconfidence in forecasting skills Influence of company’s M anagement on Analysis
Good Benchmarks: S-T-Ri-C-T-P ( STRiCTP)
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S - No Large statistical bias( beta 1) , Low correlation between A and S. High +ve correlation between A and E ( E=P-M )
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T racking error : Portfolio T.e. low to Benchmark , higher to Market index
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C overage : coverage of potfolio securities high in benchmark
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R isk characteristics - benchmark risk characteristics not biased higher or lower than portfollio
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T urnover : Benchmark turnover not excessive , i.e. it is investable
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P - Positive Active positions - if portfolio long only active weights are +ve , not -ve , indicating selection bias towards good stocks.
Expected return on a bond =
real rate +
I (inflation premium)
Dont (default premium)
Like (liquidity premium)
My (maturity premium)
Test (tax expense)
RICCH FAMA LOSERS covers every behavioral bias:
Cognitive -(Belief perseverance)
R epresentativeness, I llusion of Control, C onfirmation Bias, C onservatism, H indsight bias.
Cognitive -(Information Processing Errors)
F raming, A vailability bias, M ental Accounting, A nchoring and Adjustement,
Emotional Biases-LOSERS as explained earlier itself
L oss Aversion bias, O verconfidence bias, S elf-control bias, E ndowment bias, R egret Aversion bias, S tatus-quo bias