Schweser also said we wouldn’t have to calculate 2 bond hedge for MBS, but 2009 proved that to be wrong.
I have no doubt in skill’s abilities to pass using just schweser. I am also using schweser only, and if I fail, it wouldn’t be because of Schweser. Schweser is sufficient and covers 90-95% of the exam - even if it’s more calculations based, it’s not like they forget about certain topics. If you get a very good sense of this 90-95%, you’re golden.
my general rule of thumb - if it’s in Schweser, know it. If they said not to worry about calculating it, they wouldn’t have provided it. The fact that they did means know it regardless.
Agree generally w/skillionaire, there are a lot of folks who can pass the test w/just Schweser (I know several from last year… I wasn’t one of them). Funny there’s still this schism b/w CFAI and Schweser - pretty childish actually. Anyway, I hope the calc’s are light if this material’s actually tested.
Eman Wrote: ------------------------------------------------------- > Global Attribution & related : Practical > Application > > Schweser Vol 5 page 149, For the Exam describes a > “contradiction” within the curriculum. Schweser > says it can “probably” be ignored. Not good > enough. > > Market Allocation = SUM [(Lb)*(Pw - Bw)] > and > Pure Sector Allocation formulas = SUM [(Lb - > {TOTAL Lb})*(Pw - Bw)] > > The CFAI Curriculum in Global Attribution Reading, > volume 6, page 224 actually uses the formula as > for Pure Sector Allocation. > Of course, the two formulas give the same total, > but different individual components. > > Basically, the main challenge is being sure which > formula to use if the question asks about > allocation effect for components when multiple > components are given in a question. It would be > great if the exam question would say “attention! > you are in the global allocation section.” Well, > it might but it might not. > > My rule is related to the practical application: > if the question _mentions_currency_selection_ --> > Market Allocation formula > otherwise --> Pure Sector Allocation formula. It’s not necessarily a contradiction in the curriculum, it’s two entirely different attribution models. Reading 46 uses Brinson-Fachler (which is pretty much standard for equity attribution), and reading 47 uses Brinson-Hood-Beebower. Neither Schweser nor the CFA curriculum really explain this. My plan of attack is to use reading 47 if they give me anything with multiple currencies, and reading 46 if it’s single currency.
skillionaire Wrote: ------------------------------------------------------- > Eman Wrote: > -------------------------------------------------- > ----- > > Global Attribution & related : Practical > > Application > > > > Schweser Vol 5 page 149, For the Exam describes > a > > “contradiction” within the curriculum. Schweser > > says it can “probably” be ignored. Not good > > enough. > > > > Market Allocation = SUM [(Lb)*(Pw - Bw)] > > and > > Pure Sector Allocation formulas = SUM [(Lb - > > {TOTAL Lb})*(Pw - Bw)] > > > > The CFAI Curriculum in Global Attribution > Reading, > > volume 6, page 224 actually uses the formula as > > for Pure Sector Allocation. > > Of course, the two formulas give the same > total, > > but different individual components. > > > > Basically, the main challenge is being sure > which > > formula to use if the question asks about > > allocation effect for components when multiple > > components are given in a question. It would be > > great if the exam question would say > “attention! > > you are in the global allocation section.” > Well, > > it might but it might not. > > > > My rule is related to the practical application: > > > if the question _mentions_currency_selection_ > --> > > Market Allocation formula > > otherwise --> Pure Sector Allocation formula. > > Yeah, was just about to post this and Eman stole > my thunder. > > Also kinda funny how Schweser pwns the CFAI rep > who they talked to and basically call him or her a > moron in the explanation. > > Made me feel proud to be a lifelong Schweser > customer. skillionaire, what formula in the CFAI material is incorrect?
wow!! people seem to have a lot of time to discuss about this, 15 days before exam. Fascinating. Make the tension seen on the street of Bangkok those days seem like child play compared to this. Ops, time to stop dickering around for me as well, otherwise I will get caught in the cross fire like just another tourist in bangkok.