cdogstu77 Wrote: ------------------------------------------------------- > Taylor Rule??? I got 3.75%, but what about that > second part. I said an increase in rate would > cause recession, but thinking back i may have made > mistake in comparing to neutral rate. Yes, you don’t compare to neutral rate, you compare to current rate (which was given as 5.5%). So the reduction in interest rate would make inflation worse. NC
^^ my point exactly.
^ agree (phew)
LongOnCFA Wrote: ------------------------------------------------------- > nevcfa1 Wrote: > -------------------------------------------------- > ----- > > Dsylexic Wrote: > > > -------------------------------------------------- > > > ----- > > > i said acute. chronic ones can last really > long > > > -multiple years…there isnt much need to > trade > > > that often. acute ones need to be arbitraged > > away > > > asap -rapid trading needed -that was my story > > > anway. > > > > Question asked “frequently”… “chronic” means > > something that happens often… so answer > should > > be “chronic” rather than “acute”. > > > > “acute” can result in large trades, but > > infrequently. > > > > Really a test of English than finance I think. > > > > NC > > Sorry wrong. Chronic ineffciencies cannot easily > be exploited by trading. Acute can, so therefore > the trader will trade more with acute > ineffciencies. I got acute as well, but i think I’m wrong. I think your reasoning is right. nevertheless, if people think markets aren’t efficient (chronic), then they will trade more frequently --> more trading… the question no is, are there more arbitrage trades out there or trade because ppl believe a stock in under/overvalued… I suppose CFAI didn’t cross-checked this…
AM was brutal PM made up for it. Overall - felt pretty good - pased (@ 90% confidence level) Don’t worry about the small stuff - everybody will get at least 1-2 wrong on most items sets - don’t focus on them - they will just get you depressed. Focus on the big picture - and that is you probably got at least 4 out of 6 correct - and maybe even 5 or 6 on some. So most of you will be fine…