CFAI end of chapter questions

Anyone else finds IPS related questions extremly lengthy and very ambigious? I can never answer right to the point and most of the time my answers are way out of the ballpark Very confused :frowning:

Yeah, they are pretty long. No way we have time to write anything near what the solution has. My focal points for those were to see how they determined risk tolerance and required return as well as what the return objective is. The constraints are usually pretty straightforward.

Those are Answer Guidelines, there is no way you are expected to write that, just hit the main points.

better to look at the actual past papers than use back of cfai questions, especially if time is pressing (as is for most of us first timers at L3) …

The Edge Wrote: ------------------------------------------------------- > better to look at the actual past papers than use > back of cfai questions, especially if time is > pressing (as is for most of us first timers at L3) > … Yep. The questions and guidance answers on past exams are far more concise.

could you guys please help out with my post: For those who use TI BA 2 Plus calculator- Simple NPV help!!! please… Posted by: IH8FSA (IP Logged) [hide posts from this user] Date: April 19, 2008 04:49PM Question 13 A-2, reading 15: “The after tax return requirement to accumulate 2 million in 18 years beginning with an asset base of 1,235,000 and annual outflows of 26,000 is 4.427%” So, I am able to verify it on the calculator (N=18 PV=1235000, PMT -26,000, I/Y=4.427 and when i calcualte FV i do get 2 million), ****BUT the question states how to get the return, so when I enter ( N, PMT, FV and PV, and try to calculate I/Y I get an error, your help will be greatly appreciated on how to get the return of 4.427. Thank you

bigwilly Wrote: ------------------------------------------------------- > Those are Answer Guidelines, there is no way you > are expected to write that, just hit the main > points. Exactly. Take heart my fellow L3ers, the CFAI even states that the guideline answers are more complete than actual exam answers receiving full credit: http://www.cfainstitute.org/cfaprog/resources/essaytips.html

IH8FSA I had answered your post for the TVM calculation using TI BA II Plus. CP

What I’ve found is that you need to throw common sense and everything you have learned on the job out of the window when answering IPS questions. If a factory worker wants to roll the dice on a $500,000 inheritance…hey why not. No matter if he has 4 kids under 6, earns minimum wage and his wife is a teacher’s aide (no offense to teacher’s aides if there are any in this forum…it’s just that you lot don’t earn a whole lot wonga). So go ahead William, bet on black while you’re at it.