They can’t possibly test the same minor topic twice in a row, can they? Therefore, I suggest we all skip it…
you are just saying that so when it pops up on the exam you have an edge.
dirtydirty Wrote: ------------------------------------------------------- > They can’t possibly test the same minor topic > twice in a row, can they? > > Therefore, I suggest we all skip it… Why take the chances? It isn’t that long of a section. Actually…don’t read it if you don’t want to…
yeah im just messing around - i didn’t write L2 last year but i get the feeling schweser gave this one to 2 sentences? paragraph tops?
CFAI text specifically states that candidates are not responsible, within Reading 71, for deriving or memorizing formulas introduced in Sections 4 to 6. Those sections are called: Section 4 - Security Selection: The Treynor-Black Model Section 5 - Multifactor Models and Active PM Section 6 - Imperfect Forecasts of Alpha Values and the use of the TB Model in Industry This has been covered a few times already in other posts.
With that said, I would still get a firm grasp of the theories behind the TB optimizing portfolio model (i.e. active / passive portfolio, etc.).
bhill020 Wrote: ------------------------------------------------------- > CFAI text specifically states that candidates are > not responsible, within Reading 71, for deriving > or memorizing formulas introduced in Sections 4 to > 6. > > Those sections are called: > > Section 4 - Security Selection: The Treynor-Black > Model > Section 5 - Multifactor Models and Active PM > Section 6 - Imperfect Forecasts of Alpha Values > and the use of the TB Model in Industry > > This has been covered a few times already in other > posts. yeah but if they ask you a qualitative question there’s a chance that it can relate to a formula
but many of the fomulas used in treynor black are from the market model. So they should be memorised!
True enough guys. I don’t disagree!
I memorized it anyway, even though it’s probably not necessary. But I think the key is knowing how to use the model even if you haven’t memorized it. If you know how to use it, you can answer difficult questions about it that don’t require memorizing formulas.
bTW, can those ppl who didnt pass from last year tell us, what was the Treynor black question ? bcoz reading schweser doesnt seems so hrd :s
monki Wrote: ------------------------------------------------------- > bTW, can those ppl who didnt pass from last year > tell us, what was the Treynor black question ? > bcoz reading schweser doesnt seems so hrd :s FYI - you’re asking people to violate Standard VII - Responsibilities as a CFA Institute…Candidate.
how about this: for those who took L2 last year- did CFAI text tell you that formulas were not needed to be memorized? (like this year). i’m conflicted on this… its actually not tough to understand when you go through it a couple times. also, the Stalla study guides actually go through the whole process… in their study guides and test the concept in the passmaster (= to Qbank). im not sure if they are trying to cover the butt or are forcing us to go through it in order to maximize knowledge on the applicable TB LOSs