GP and 3rd Party Valuation Settled Once and for All.

CFA Level II
#21

supersharpshooter Wrote: ------------------------------------------------------- > i thought IRR was money weighted the question was asking for false statement is this true??? I think it was asking for the correct one… not the false statement

#22

I am 100% sure the question was asking for FALSE sentence. And that’s how eliminated the money-weighted as that is TRUE for PE firms.

#23

hmm if it is 5050 it is actually asking for which is true swaption …

#24

Do you remember what the 3rd sentence was?

#25

take that back… I dont remember if it is 5050 or 5051 but the question I remember is …what is the true answer …which I guessed as money weighted… the other options were time weighted and something else…gross margin ???

#26

The AI vignette was in 5050 (I took it from NY). I remember using POE and getting to statement 3 being incorrect. Grr… I can’t remember anything now.

#27

I think the B choice is about time weighted, C choice is about if GP does the valuation, right? All I remember after I mull over it, and my thought seemed to lean toward that GP does the valuation. So I am right according to post. But I don’t recall it is picking the false. On my blur memory, it seems I picked C. WTF

#28

on my exam it said it was looking for the correct one A) something about RVPI being realized return B) this is a time weighted return C) GP values or has third party value assets I chose C… if i remember it correctly, is C correct here

#29

@CFA: likewise on mine which was 5151, asked for the correct answer and I answered C which was GP and third party.

#30

CFAdreams Wrote: ------------------------------------------------------- > on my exam it said it was looking for the correct > one > > A) something about RVPI being realized return > B) this is a time weighted return > C) GP values or has third party value assets > > I chose C… if i remember it correctly, is C > correct here Even I don’t know the question, but I picked C and seemed most logical hope thats correct

#31

I chose time-weighted return because my first thought was “IRR” and I jumped on it. I see the excerpt from adavydov7 from CFAI text. I’ve marked this as -1 for me.

#32

CFAdreams Wrote: ------------------------------------------------------- > on my exam it said it was looking for the correct > one > > A) something about RVPI being realized return > B) this is a time weighted return > C) GP values or has third party value assets > > I chose C… if i remember it correctly, is C > correct here Yea Dreams! this is exactly what they asked. And I did a C on this. PE returns are money-weighted not time-weighted so B is out of question. RVPI is unrealized so A gone to. Ans is C. Please confirm?

#33

Im down with C

#34

That’s it. Your confirmation is like CFAI’s confirmation. +1 for us here.

#35

I put the GP answer but isn’t the IRR supposed to be a money or cash flow weighted return?

#36

It was actually a dummy answer. You were supposed to leave it blank.

#37

it is C… i checked in the book… i am so surprised how we can endlessly continue on the forum, but do not bother to check books… My wife will kill me if she sees me with the CFA books again…So i waited for her to sleep and sneaked into the basememt to check in the book… and yes the answer is C… So guys if you do not hear from me next day, you know you need to call 911… :slight_smile:

#38

Thanks bro