Knowing that skipping the entire SS 17 may prove to be a deadly move, I would like to get your thoughts on my strategy for this SS: Learn: TWRR/MWRR, SAMURAI, Manager’s Universes benchmark, Customer Security-Based benchmark, Micro Performance Attribution, five methods of Performance Appraisal, Global Portfolio Return – Decomposition and Attribution. Skip: Six tests of benchmark quality, Macro Performance Attribution, Fundamental Factor Model Attribution, Bond Portfolio Performance Evaluation, Manager Quality Control Chart, Active and Passive Currency Management, Risk Budgeting in Global Performance Evaluation
I have just finished a few CFAI sample/mock this past week. It seems almost all area from this SS have been tested. I’d rather skip options in entirety(relying only on basic knowlege of options learnt from L1&L2) than any section in this SS. just my 2c.
I would definitely include Macro Performance Attribution, Fundamental Factor Model Attribution Some of the questions testing these areas can be found in EOC questions as well. If you already fininsh the topics you mentioned in Learn Section in SS 17, the other topics are very simple to understand.
gios Wrote: ------------------------------------------------------- > I have just finished a few CFAI sample/mock this > past week. It seems almost all area from this SS > have been tested. I’d rather skip options in > entirety(relying only on basic knowlege of options > learnt from L1&L2) than any section in this SS. > just my 2c. This was the exact thought I’ve had but then I couldn’t risk it given the weight given to Options.
charu_mulye Wrote: ------------------------------------------------------- > I would definitely include > Macro Performance Attribution, Fundamental Factor > Model Attribution > > Some of the questions testing these areas can be > found in EOC questions as well. > > If you already fininsh the topics you mentioned in > Learn Section in SS 17, the other topics are very > simple to understand. Thanks Charu. I haven’t finished the items listed under Learn yet but while skimming throught it I felt like they are relatively easy to understand and memorize. The items listed under in Skip are just too much to memorize especially when you don’t know what the heck they are talking about.
Here is some advice I got: * Make sure to know the Customer Security-Based and Manager Universe market indices (of the 7 they give) * They’re more likely to ask for the advantages/disadvantages of TWRR vs. MWRR, rather than how to calculate each * You have to know the disadvantages of the Median Manager (frequently tested) * Bond Portfolio Performance Attribution was tested before (2005 or 2004?) Make sure you understand the Int Rate Management Effect, Sector/Quality Mgmt Effect, etc. * For the Risk-Adjusted Performance Measures (info ratio, etc.), you have to know which ratios produce the same conclusions (i.e. relates performance to systemic risk vs. non-systemic) * Macro Performance Attribution hasn’t been asked on L3 yet, but it’s fair game to terrorize us… wasn’t this on the CFA mock exam last year? recall throwing the paper across the room…
Neveruse_95%_everagain Wrote: ------------------------------------------------------- > Here is some advice I got: > > * Make sure to know the Customer Security-Based > and Manager Universe market indices (of the 7 they > give) > > * They’re more likely to ask for the > advantages/disadvantages of TWRR vs. MWRR, rather > than how to calculate each > > * You have to know the disadvantages of the Median > Manager (frequently tested) > > * Bond Portfolio Performance Attribution was > tested before (2005 or 2004?) Make sure you > understand the Int Rate Management Effect, > Sector/Quality Mgmt Effect, etc. > > * For the Risk-Adjusted Performance Measures (info > ratio, etc.), you have to know which ratios > produce the same conclusions (i.e. relates > performance to systemic risk vs. non-systemic) > > * Macro Performance Attribution hasn’t been asked > on L3 yet, but it’s fair game to terrorize us… > wasn’t this on the CFA mock exam last year? recall > throwing the paper across the room… Thanks! I agree with your list. Do you think we need to memorize formulas for Bond Portfolio Perofrmance or just the concepts? Also, I am thinking of including calculations Global Peofrmance Management.
Hey Ashwin - you mean, Bond Portfolio Performance within SS17? I don’t see them asking for formulas, more analytical questions. Like, showing the incremental spread derived from each element of Fixed Income attribution (e.g. external int rate environment, sector/quality management, selecting specific securities) - then saying “Manager’s strategy is to get excess return from selecting underpriced securities”, and we have to respond whether the data supports this strategy and, if not, then why not. I would take the time to memorize the Global Performance Evaluation formulas (SS 18): base currency returns, etc. Just because they showed up in 2008 in the a.m., if I recall right. Let me ask: Capital Market Expectations (SS #6), what’s testable there? I put down 9 Problems in Forecasting, Grinold-Kroner, estimating int’l equity risk premium with integration/segmentation, business cycle impact on capital market returns, Taylor Rule, advantages/disadvantages to major approaches to econ. forecasting,… others?
Neveruse_95%_everagain Wrote: ------------------------------------------------------- > Hey Ashwin - you mean, Bond Portfolio Performance > within SS17? I don’t see them asking for formulas, > more analytical questions. Like, showing the > incremental spread derived from each element of > Fixed Income attribution (e.g. external int rate > environment, sector/quality management, selecting > specific securities) - then saying “Manager’s > strategy is to get excess return from selecting > underpriced securities”, and we have to respond > whether the data supports this strategy and, if > not, then why not. > > I would take the time to memorize the Global > Performance Evaluation formulas (SS 18): base > currency returns, etc. Just because they showed up > in 2008 in the a.m., if I recall right. > > Let me ask: Capital Market Expectations (SS #6), > what’s testable there? I put down 9 Problems in > Forecasting, Grinold-Kroner, estimating int’l > equity risk premium with integration/segmentation, > business cycle impact on capital market returns, > Taylor Rule, advantages/disadvantages to major > approaches to econ. forecasting,… others? Yup! I meant Bond Portfolio Performance within SS 17. I agree with your list of SS6&7 with the following: Out of the 9 limitations of forecasting; I’d put special emphasis on Using Ex Post data to estimate Ex Ante performance, and Psychological traps. Add: Relationship of inflation to the business cycle and inflation’s impact on asset return Add: Valuing a stock market series.