Each return objective is so different for each practice year. Even EOC questions are becoming challenging. Getting confused when we need to add emergency cash or not. I thought this is walk in the park but needs a lot more practicing and still cannot guarantee you will crack it
Do what you can on the return calc, and even if you miss emergency cash etc. hopefully you can get partial credit for gettin most of thr cash outlays and the process
ditto
On the other hand, only 30-40 miniutes are given to solve an IPS problem for a client which could live anywhere except for Mars… 
What CFAI quesiton requires emergency cash??
dtrynoski Wrote: ------------------------------------------------------- > What CFAI quesiton requires emergency cash?? Don’t know if this was Stalla or CFAI, but the problem will say they want a liquidity reserve equal to x months of salary.
I always assume liquidity cash in their allocation…not as a reduction in the investable assets. I suppose if it is a unique circumstance, you may want to include it, or at least comment on it.
If you look back CFA 2009, 2008 and 2007 IPS questions. In of one of the questions they did include emergency cash in return calcs but not in other though. Anyway painfully going through all EOC, every IPS question I could imagine in previous tests and making flash cards. Atleast now I know if investors return expectation is ridiculous for wealthy investor, we should just say above average and justify reasons. My goals is to get 30% in AM and 35% in PM with 5% margin to pass. After spending more than 200 hours, I get a feeling like I am not totally prepared. Another 22 days left , goal is to put in another 200 hours
How can you study 10 hours everyday lol…even if you are unemployed…Either way doing 2/3 of the recommended program study time in the last 22 days will drive you nuts.
I quit my job recently. The productivity is slightly low but still possible
bpdulog Wrote: ------------------------------------------------------- > dtrynoski Wrote: > -------------------------------------------------- > ----- > > What CFAI quesiton requires emergency cash?? > > > Don’t know if this was Stalla or CFAI, but the > problem will say they want a liquidity reserve > equal to x months of salary. It instructs you to include that in the total asset base right?
dtrynoski Wrote: ------------------------------------------------------- > bpdulog Wrote: > -------------------------------------------------- > ----- > > dtrynoski Wrote: > > > -------------------------------------------------- > > > ----- > > > What CFAI quesiton requires emergency cash?? > > > > > > Don’t know if this was Stalla or CFAI, but the > > problem will say they want a liquidity reserve > > equal to x months of salary. > > > It instructs you to include that in the total > asset base right? Yeah, unless they’re prepaying expenses right now or the client specifically says they don’t want to include it in investable assets.