Last year I bombed the TB section. And I got 2 of 6 on the IPS Question from Mock 2 which was the exact same question as the 2007 exam. Even if you do well on other sections…you can’t afford to step on a landmine like that. And PM is 3X’s as tough this year.
Wow, the IPS section of Mock2 was on the 2007 exam? You’ll nail it this year my friend.
Most of Mock 2 WAS the 2007 Exam.
damn now im nervous…was mock 1 based on last year as well?
Mock 1 wasn’t noticeable, but Mock 2 is pretty much a hodge podge of last year’s exam. Don’t worry pinky, PM is my weak spot too. I’m dedicating a good block of time to it tomorrow. In my case I disagree with a lot of the answers as I wouldn’t give the same advice to a client that the book would. The one that really sticks in my mind is the couple with 4 kids, $60K in credit card debt, a mortgage on their house, and no other savings inherit $400K…do they have above average ability to take risk? The book says they do, but if that client were sitting in my office I’d urge them to pay off the $60K in CC debt (which they are probably paying 18% on), set money aside for their kids education and establish an emergency fund, then fund some sort of retirement account with what is left. It is just hard trying to retrain what the “anwer” is.
Yeah hopefully this will be our year.
I think you guys will pass this year and I have no doubts about that. I see you guys knowing and scoring pretty well on the mock exams too. If you guys don’t have a chance then I am screwed big time!
Sponge_Bob_CFA Wrote: ------------------------------------------------------- > Mock 1 wasn’t noticeable, but Mock 2 is pretty > much a hodge podge of last year’s exam. > > Don’t worry pinky, PM is my weak spot too. I’m > dedicating a good block of time to it tomorrow. > In my case I disagree with a lot of the answers as > I wouldn’t give the same advice to a client that > the book would. The one that really sticks in my > mind is the couple with 4 kids, $60K in credit > card debt, a mortgage on their house, and no other > savings inherit $400K…do they have above > average ability to take risk? The book says they > do, but if that client were sitting in my office > I’d urge them to pay off the $60K in CC debt > (which they are probably paying 18% on), set money > aside for their kids education and establish an > emergency fund, then fund some sort of retirement > account with what is left. > > It is just hard trying to retrain what the “anwer” > is. where do i find this example?
the CFAI website. Its 60 for one mock or 100 for 2 mocks. They are the CFAI mock exams
deep, thanks, i mean this one… edit: or did i just do that problem and do not recall… that would be sad… The one that really sticks in my > mind is the couple with 4 kids, $60K in credit > card debt, a mortgage on their house, and no other > savings inherit $400K…do they have above > average ability to take risk? The book says they > do, but if that client were sitting in my office > I’d urge them to pay off the $60K in CC debt > (which they are probably paying 18% on), set money > aside for their kids education and establish an > emergency fund, then fund some sort of retirement > account with what is left.
I have not seen that one before but I have not done mock 2 yet either. I"ll know after tonight
well it’s not in mock 2 because i’ve done them and cannot recall. that;s why i was wondering
Pretty sure that it in the problems from the texts.
Yeah “Sponge_Bob_CFA” was reffering to Q7/8/9 on pg 314 - I completly agreed - even asked about this one (as it was the opposite of what I was told the night before in class) - answer was bascially because it just is… I mean they have more CC debt than annual income - how can they have a high ability to take risk???
It was either a text or Schweser problem…I generally disagree with lots of their “ability” to take risk ratings. I’m sorry, but if you have $60K in cc debt, a modest income, and no savings…inheriting $400K does NOT make you have an “above average” ability to take risk. However, on exam day I’ll just pretend I work the drive through line at McDonald’s and that CFAI is always right.
Or the woman who has a net worth of $78 million dollars and she has “high liquidity” constraints because she needs to scrounge up a $100,000 a year for charity. Yes, I know it had some text that she only wanted it to come out of equity holdings, but come on I thought they wanted to test portfolio management, not whether I can F’ing find some stupid foot note that is not realistic.
Sponge_Bob_CFA - how are you going to come to that conclusion though? Is there a materiality level for when they have a high ability to take risk?
Unfortunately there is no hard rules for determining that, so it is the consensus of the question writers who decide. I think in LIII there is a lot more wiggle room becuase half the exam is essay, where you can at least explain your rationale.