The question about the swap for maple leaf: 3-month LIBOR swap? They don’t want to give up their profits in their expertise but they want to gain on the unfamiliar Japanese market.
Slash Wrote: ------------------------------------------------------- > Definitely responsible for employee compliance > training i put this too however looked it up - and it says self-training
I thought it was equity index swap - they get exposure to japan, but continue to gain alpha in equities
Jscott24 Wrote: ------------------------------------------------------- > Slash Wrote: > -------------------------------------------------- > ----- > > was that the one about getting the independent > > analyst to research it? I said it was following > > the standards > > > in terms of pooled accounts, clients are > responsible to analyze the suitability, not the > fund I think you’re referring to the question about the not having suitability standards for pension funds. I’m referring to the question where the sponsor wants to bid up the prices by buying more shares in the pension plan. An independent analyst determines that it is undervalued so I said it was in compliance with the standards.
The independent analyst confirmed this as undervalued and felt that a larger position was suitable so not in violation.
Slash Wrote: ------------------------------------------------------- > The question about the swap for maple leaf: > 3-month LIBOR swap? They don’t want to give up > their profits in their expertise but they want to > gain on the unfamiliar Japanese market. pay the return on the one they had expertise on. Forgot the name.
house money such a basic concept in beh fin… yet I messed it up. I put down risk tol increases, then changed it to unchanged. couldn’t throw “risk seeking behavior” out of my head. Risk seeking is the same as increased tol for risk I guess. My rationale for changing to unchanged was that you just let the exposure ride, you don’t actually increase the exposure, where is in loss aversion you double down. oh, well, overthought a simple question looks like
Jscott24 Wrote: ------------------------------------------------------- > Slash Wrote: > -------------------------------------------------- > ----- > > Definitely responsible for employee compliance > > training > > > i put this too > > however looked it up - and it says self-training CFAI volume 1 p. 211 first paragraph: “Compliance officers should take steps to implement appropriate employee training and and conduct continuing self-evaluations of the Manager’s compliance practices to assess the effectiveness of such procedures.”
Random_Choice Wrote: ------------------------------------------------------- > I felt the exam was much easier. > > The afternoon session was quite easy. Agree. I thought AM was not so great but PM was quite easy.
Swiss?
I thought carve out was a total BS question. I surely didn’t come across that calculation before. others did though.
sct123 Wrote: ------------------------------------------------------- > Slash Wrote: > -------------------------------------------------- > ----- > > The question about the swap for maple leaf: > > 3-month LIBOR swap? They don’t want to give up > > their profits in their expertise but they want > to > > gain on the unfamiliar Japanese market. > > > pay the return on the one they had expertise on. > Forgot the name. They would want to keep the returns on the market they have expertise on. They would only give it up if they didn’t know what they were doing with their exposure and wanted to hedge it away.
Slash Wrote: ------------------------------------------------------- > Jscott24 Wrote: > -------------------------------------------------- > ----- > > Slash Wrote: > > > -------------------------------------------------- > > > ----- > > > Definitely responsible for employee > compliance > > > training > > > > > > i put this too > > > > however looked it up - and it says > self-training > > CFAI volume 1 p. 211 first paragraph: “Compliance > officers should take steps to implement > appropriate employee training and and conduct > continuing self-evaluations of the Manager’s > compliance practices to assess the effectiveness > of such procedures.” NICE! sorry i think i read “Self-” and threw the book. thanks for clarifying
swap swiss index return for the other thing? they were a swiss fund
loss averse defin more risk. double down.
My exam experience at the Sheraton NYC: The head proctor shut the door by 850-855AM, before she started reading her exam etiquette script. It appeared that she locked out several people who were a bit late…this is months in preparation, i hope those people finally got to take the test yesterday.
nailit Wrote: ------------------------------------------------------- > I thought carve out was a total BS question. I > surely didn’t come across that calculation before. > others did though. i caught this one on Thursday in practice exam vol 2 exam 3 pm question 22.5 never had seen this before.
averaging down would be evidence of anchoring, IMHO
buy collar
motorfinger Wrote: ------------------------------------------------------- > My exam experience at the Sheraton NYC: > > The head proctor shut the door by 850-855AM, > before she started reading her exam etiquette > script. It appeared that she locked out several > people who were a bit late…this is months in > preparation, i hope those people finally got to > take the test yesterday. As she was reading the guy guarding the door opens it and about 10 people run in as she is yelling “get out”. Think they let them back in after 9am.