I don’t understand what LOS CFAI EOC 11 and 12 relate to or if we’re expected to perform those calculations. The Sortino ratio wasn’t even mentioned in the Schweser reading at that point. Also, I don’t understand CFAI EOC #26. What I remember from other questions was that alternative investments exhibit positive skewness and kurtosis. Why is the answer positive skewness and kurtosis? Another difficulty that I have with this reading is trying to remember what goes into the biases for the different benchmarks and their construction. How are we supposed to keep track of them?
Schweser is el diablo on level 3
Bradleyz Wrote: ------------------------------------------------------- > I don’t understand what LOS CFAI EOC 11 and 12 > relate to or if we’re expected to perform those > calculations. The Sortino ratio wasn’t even > mentioned in the Schweser reading at that point. Don’t know what the LOS say exactly, but Sortino is the ‘bread’n butter’ of level III. > > Also, I don’t understand CFAI EOC #26. What I > remember from other questions was that alternative > investments exhibit positive skewness and > kurtosis. Why is the answer positive skewness and > kurtosis? > Not sure what you mean by the other questions’ answer, but positive skewness and low kurtosis lead to lower distribution on the left side, so what is wrong with that? > Another difficulty that I have with this reading > is trying to remember what goes into the biases > for the different benchmarks and their > construction. How are we supposed to keep track > of them? You need to know what the benchmarks are (the most popular), what the strengths and most importantly their weaknesses, compare them against each other.