in 2011 exam, it says finngan should reduce equity but buy more bond because she is young and has higher human capital, I want to know why? young also can buy equity, isn’t it?
in 2012 sample exam 1, ethics question Q1, it says fees should be disclosed using plain lanaguage, but they already disclose management fee, although they didn’t disclose other fee, is the formate not correct? what’s the forma of plain lanaguage?
IPO allocation should be based on order size or portfolio value? in HK, we are based on portfolio value
futures contracts would be considered a direct commodity investment. An indirect commodity investment would be common stock of a commodity producing company ie Chevron.
I don’t see why an ETF that attempts to track a commodity index through futures contracts would not be a direct investment.
CFAI curriculum doesn’t address this ETF question do they? You just need to know direct vs. indirect real estate and direct vs. indirect commodities. REITs and CREFs are indrect whereas owning the actual property is direct. Commodities and their futures contracts are direct whereas stock of companies that produce commodities are indirect.
My understanding of why REITs are indirect is because they utlize leverage and the economics of the securities are different than that of direct real estate.
Refer to the Human Capital section in the material for that 2011 question. It should be obvious if you read the curriculum.
For Ethics, I’m not good at that stuff.
In general you seem to have a thousand questions. Perhaps read the material and study prior to taking the exam. I spent hundreds of hours reviewing and figuring stuff out on my own.
in 2011 exam, it says finngan should reduce equity but buy more bond because she is young and has higher human capital, I want to know why? young also can buy equity, isn’t it?
in 2012 sample exam 1, ethics question Q1, it says fees should be disclosed using plain lanaguage, but they already disclose management fee, although they didn’t disclose other fee, is the formate not correct? what’s the forma of plain lanaguage?
IPO allocation should be based on order size or portfolio value?
If PV(human capital) = part of your current allocation. The younger you are the bigger the PV is.
If the HC is equity like then they have a lot of equity. Probably want to diversify and get some bonds in there.
Not sure what the sample exam is…but did they disclose the amount of the fee? e.g. 2%. That needs to happen. Were there other fees left out? Did all parties disclose the fees?