It is becoming a real challenge for me to memorize PM formulas especially using CFA book examples. The examples are way tougher than I imagined.
My instructor told me that only 30-40% of Qs will require calculations and the harder formulas you are not expected to know. At the beginning of the Chapters they tell you what you need to calculate and just summarize. Definitely the basic equations.
I just went through the EOC questions for reading 67 and it was beyond brutal.
I thought even 64 was brutal. It took me 2-3 hrs to go through each question and answer thoroughly
What was 64? I’m guessing swaps, right?
Sorry that was reading 64 in PM. I agree Derivatives are all whole different ball game. It took me one week to learn that stuff.
The LOS for reading 67 states that you need to “describe” the Treynor Black model, not calculate or demonstrate. I think you’ll definitely need an understanding of the concepts of what the calculations are actually accomplishing, but not actually performance these calculations. I do concur. The EOC questions are nuts for 67, but I don’t think they will parellel the actual exam. (At least I hope not.)
Oh…I’ve got a “description” of the TB Model. I don’t think it will be one of the choices though!
There was one question at the end of Section 64 that required a formula that I haven’t seen before. Basically, you are trying to measure correlation of 2 stocks based on covariance, standard deviation and excess residual return or something similar.
It is based on market model. It is pretty tricky. Now I know If you do not do EOC, how we can get screwed.