How was the Test ? Please share your experiences

CFA Level III
#21

Corrupted Wrote: ------------------------------------------------------- > If people are loss averse, would they take more > risk with their losing investments or maintain the > same? maintain - the question was about their holding i think

#22

House money ?? how random was that ??? Absolutely agree PM had very very tricky questions… sharpe ratio ???

#23

Did anyone notice that the fixed income question said at the end of year 4 and 5, making the duration 5 and 6. Thereby making reinvestment risk the problem?

#24

monki Wrote: ------------------------------------------------------- > House money is ppl take MORE risk because they > think the money came too easily… FUCKKKKKK i > didn’t get it right in the exam… but i am upset > they put something like that on the exam Yeah, that was on the past CFA exam with the soccer player who got a bonus. I didn’t think it was in this year’s curriculum though. I thought the WACC question was a bitch, didn’t see that at all until a two days ago when I was taking my last practice Schweser test… Good thing I spent some time on that on Friday…

#25

I felt it was much easier than the '08 exam, but not sure if it’s because I was better prepared this time around (didn’t use Schweser at all) or a combination. I was happy there was no attribution, complex option strategies, or ISS calcs, which I was expecting.

#26

monki Wrote: ------------------------------------------------------- > House money is ppl take MORE risk because they > think the money came too easily… FUCKKKKKK i > didn’t get it right in the exam… but i am upset > they put something like that on the exam Me too… it pissed me off!!! but the thing is that i really f…cked up the morning session, so i really dont expect too pass. I dont feel well righ now

#27

Jscott24 Wrote: ------------------------------------------------------- > Corrupted Wrote: > -------------------------------------------------- > ----- > > If people are loss averse, would they take more > > risk with their losing investments or maintain > the > > same? > > maintain - the question was about their holding i > think People who are loss averse are prone to taking more risk when their investments tank.

#28

does the duration become 5 and 6 ? i thought it would be .5 of 4 and .5 of 5 making it 4.5 equal to the duration immunization ?

#29

and why would they not increase their position to “average down” their overall price? Slash Wrote: ------------------------------------------------------- > Jscott24 Wrote: > -------------------------------------------------- > ----- > > Corrupted Wrote: > > > -------------------------------------------------- > > > ----- > > > If people are loss averse, would they take > more > > > risk with their losing investments or > maintain > > the > > > same? > > > > maintain - the question was about their holding > i > > think > > People who are loss averse are prone to taking > more risk when their investments tank.

#30

yeah that was a fucked up one…they definatly would maintaine…but some might increase… how da fa do you decide on something like taht…?

#31

That’s what I’m saying monki, they would increase their position

#32

loss aversion -hold on to investments. loss aversion leads to risk seeking - this means buying more of the losing stock . they didnt ask abt risk seeking behaviour. i got it wrong tho after much debate :frowning: .

#33

the house money bushiit i got it correct in the beginning; then went back to check the answer with 1 whole hour left. then i changed it because there are too many same answers in a row.

#34

the risk seeking behavior is not selling the stock, not buying more

#35

But they stated that the investment was tanking, right? WTF it’s just one question >:-(

#36

what was the answer on put, straddle and collar

#37

JarJarBinks Wrote: ------------------------------------------------------- > what was the answer on put, straddle and collar collar

#38

+1

#39

jscott. i just check schsweser after the exam. i am pretty sure abt that. loss averse people hold on to losing stock. risk seeking behaviour (which loss aversion leads to) causes one to average down (catch a falling knife?

#40

in am. i thought you don’t have to compute wacc according to LOS. this point is also stressed by Screweser.