I just did one of the smaller EOC, which is R44, Execution of portfolio decisions. took almost 3 hours. bah. The killers are the derivatives and PERFORMANCE sections.
If it’s taking that long, and you are writing out the answers, try using them as a review tool without writing out each answer. For example, on the short answer type questions, I have been just saying out loud what I think the answer is. It saves a lot of time.
I am currently doing the most boring stuff GIPS. Planning to start EOC from tomorrow and hopefully be able to finish it by next weekend. I hope to learn things by doing this exercise.
Writing the answers out in full detail is worth every second no matter how long it takes. When you write the answers out it forces you to REALLY think every detail through as you put it down on paper. If you are just thinking it through, one can very easily fall into the trap of thinking that you understand something when you really don’t. It’s too easy to read a question, think it through a bit, read the answer and then say “yeah, I knew that”. Writing the answer out in greater detail requires you to really think through how you would answer the question on the exam. Also, it seems that the act of writing it out helps to cement the details into your memory.
What about EOC questions that don’t seem to relate too the LOS. For example, reading 28 EOC q#1 has to do with calculating tracking risk, which isn’t mentioned in the LOS. Is that something you can skip?
Going thru the examples would be good idea but I believe there would be example for every minutia rather than LOS. How are others thought on this. S
Bradleyz Wrote: ------------------------------------------------------- > What about EOC questions that don’t seem to relate > too the LOS. For example, reading 28 EOC q#1 has > to do with calculating tracking risk, which isn’t > mentioned in the LOS. Is that something you can > skip? I would not ignore it. LOS C for this reading tells you to: discuss the criteria for selecting a benchmark bond index and justify the selection of a specific index when given a description of an investor’s risk aversion, income needs, and liabilities; As part of discussing your criteria, you need to have a sense of the tracking risk in order for the benchmark to make any sense. Of course, this is just one part of the criteria. Also, I could see it applying to LOS B as well: compare and contrast pure bond indexing, enhanced indexing, and active investing with respect to the objectives, techniques, advantages, and disadvantages of each; Tracking risk (if I remember, it should be less than 1% for a passively managed product) is one way to measure whether or not the fund is meeting its objective. Active managers of course usually have much higher tracking risk. So, I’ve tried to answer this best by using the example you highlighted and to prove out that ignoring something that at first doesn’t look like you should have to know it could be dangerous. In short, if it shows-up in EOC, unless you can conclusively rule out that it has nothing to do with any LOS, I wouldn’t ignore it. Always ask yourself how the EOC relates to the LOS. Of course, the worst thing in the world is if there are NO EOCs for LOS. My favorite example, 2008 L2 emerging markets valuation. But I digress.
There are always questions on the exam that didn’t seem to be part of required knowledge from an LOS…
McLeod81 Wrote: ------------------------------------------------------- > Writing the answers out in full detail is worth > every second no matter how long it takes. When > you write the answers out it forces you to REALLY > think every detail through as you put it down on > paper. If you are just thinking it through, one > can very easily fall into the trap of thinking > that you understand something when you really > don’t. > > It’s too easy to read a question, think it through > a bit, read the answer and then say “yeah, I knew > that”. Writing the answer out in greater detail > requires you to really think through how you would > answer the question on the exam. Also, it seems > that the act of writing it out helps to cement the > details into your memory. Read what McLeod wrote again and follow it word for word. Do it not at your own peril.