cp0821 Wrote: ------------------------------------------------------- > how about this? > > 1. ca 3.9 > 2. fa 1.9 > 3. arbitrage: borrow $ sell local fwd > 4. which good D imports? > 5. fwd discount, what amount? > 6. grow high, CA decr, FI incr. > > can anyone remember 4 and 5? I agree w/ all !!
“4. which good D imports?” what was this about? I cant remember.
2 & 4
if you converted country A px’s into country B currency- two of the goods were cheaper. Those are the ones B would ostensibly import. I ~think~ it was 3 and 5.
ctevez Wrote: ------------------------------------------------------- > it’s unbelivable that Schweser never even bothered > to mention the formula in their nites!!!Can’t > fu**ing believe it!!!it cost 2 questions and my > life is hanging on a thread Are you talking about the CA and FA questions? If so, Schweser gave you everything you needed to know in their notes.
You had 4 products, US and country B (or D). Inflation was given and based on expected spot rate you were to chose which products B would import from the US, D’s currency was depreciating b/c higher inflation. I had product 1&3, but I guess not correct. Had no time to think and simply took the cheapest ones at current date they would import. But that was too simple I’m afraid…
cool, I was pretty confident about that one. i think i got a 67% becaouse of those damn BOP questions. I also got a 67% in Quant. But my FSA and (most) of equity i think was relativly strong so I hope that pulled me through.
Import product 2&4.
hk Wrote: ------------------------------------------------------- > You had 4 products, US and country B (or D). > Inflation was given and based on expected spot > rate you were to chose which products B would > import from the US, D’s currency was depreciating > b/c higher inflation. I had product 1&3, but I > guess not correct. Had no time to think and simply > took the cheapest ones at current date they would > import. But that was too simple I’m afraid… I think the inflation would be inconsequential b/c it would have the same relative effect on all of the products.
I actually depreciated the currency then adjusted the prices for inflation. Came out with the same answer. 2 & 4
AFJunkie Wrote: ------------------------------------------------------- > I actually depreciated the currency then adjusted > the prices for inflation. Came out with the same > answer. 2 & 4 Same here
that sucks. i had 2 & 4, then changed my answer at the end.
1 down, you still have 39 question buffer left. Hell I’m through 12 already.
the futures price had products 1 and 3 as depreciated relative to the U.S., if you were to gain an arbitrage profit wouldnt you import 1 and 3 and sell U.S. 1 and 3 forward? I thought thats what the question was asking
at least i got 6/6 in real estate to help compensate. haven’t seen an ethics question that i’ve missed yet either which would be good for the “tie breaker” it all comes down to FSA and Equities in the end, anyways.
i thought these CA / FA are L1 shits too, i didnt pay too much attn during my study… what a shame… they didnt really test us on the PPP IRP IFR ICAPM stuffs but test us on these stupid things
>grow high, CA decr, FI incr. I had CA increase, FI decrease…look at emerging markets vs US…
Jscott, that seems what i got too, but who knows.
i think a lot of us got this wrong which is good sign. interest income is CA Don’t know why test level 1 stuff, even a CA or CFA with 10yrs expr won’t remember it and even if he does won’t care.
I’d be careful with this, this is everyday stuff for economists, any macro strategists, currency portfolio managers, very fundamental stuff. balance sheets of countries, like companies, just on a more aggregated level. No offense, though.