Hello everyone, We have 7 contributors signed up. I am assigning the pages to the 7 as listed below. 1. Dwight (Pages 1-2) 2. magix (Pages 3-4) [I emailed you the blank template] 3. derswap07 (Pages 5-6) 4. Bankin (Pages 7-8) 5. PatKeenan (Pages 9-10) 6. heer (Pages 11-12) 7. GetSetGo (Pages 13-15) Please email the filled pages to kkaranam at yahoo dot com. I will collate all the filled pages and send it to every one. Thanks for your help. Hope it helps us get 1 or 2 additional questions right on the exam. Cheers 
Thanks GSG for organizing this
sorry tis a bit late…i could help too…if you need any more takers…
patkeenan: Thanks for sharing the template in the first place. mumukada: Thanks for offering to help. I think we are good for now.
alright…in case you change your mind… munira.mukadam at gmail
Can I provide any additional help? I can help someone with their section as I think this could be a highly valuable study tool.
do you guys want to look at some of these notes - mike@manila. i found them pretty ok this covers the PWI, alternative and other areas http://cfasuccess.com/cs/files/folders/level3notes/default.aspx
ItsAlmostOver Wrote: ------------------------------------------------------- > Can I provide any additional help? I can help > someone with their section as I think this could > be a highly valuable study tool. If you don’t mind, could you help me with pages 9 and 10. I have filled out about half of it but I dont have my CFA books with me (only some notes) so I won’t be able to finish until tuesday (I am at my fiance’s parents house for easter). This is what I have compiled so far. Rebalancing strategies: 1) Constant Mix 2) CPPI - $stock = m(assets-floor) Five factors that determine the optimal corridor width and if it should be wide or narrow: 1) Transaction costs (+ correlation) 2) risk tolerance (+ correlation) 3) Correlation W/ portfolio (+ correlation) 4) Volatility of asset class (- correlation) 5) Volatility of rest of portfolio (- correlatn) State Roy’s Safety-First Measure: (Rp – Rmar)/Std. Dev of portfolio Application of ETF’s (couldnt find this in my notes, but I dont think its covered in L3 anymore) Compared to active-management, indexing has three major advantages: 1) Diversification 2) Lower total costs 3) Consistent Performance Risks with investing in mortgage securities 1) Spread risk 2) Interest rate risk 3) Prepayment risk 4) volatility risk 5) model risk Additional assumptions when implementing a two-bond hedge: 1) YC shifts used in constructing 2-Bond hedge are reasonable 2)Prepayment model used does a good job of estimating how cash flows will change when YC changes 3)Assumptions underlying Monte Carlo simulation model are realized 4)Avg. Price change is a good approx. Of how the mtg. security’s price will change for a small movement in interest rates State the formulas for creating a synthetic stock index fund: # contracts = {(Theld )(1 + Rf)T }/ (Pf)(multiplier) Three types of foreign exchange risk: 1) Economic 2) Transaction 3) Translation Currency management approaches: 1) Balanced Mandate 2) Currency Overlay 3) Separate asset allocation Also, I am pretty sure the following are not in L3. State the steps taken when managing risk of 1)a leveraged floater and 2)an inverse floater: State the formulas used for calculating the effective interest rate on a loan when using interest rate options or an FRA: Three primary methods use to estimate the size of the derivatives market Thanks in advance for any help!
I’m making some slight changes to my pages to update them for the 2009 curriculum. I will include the LOS for reference.
I will work on pages 9 and 10 right now.
I’ve quickly come to realize that many of these lists do not need to be memorized, but rather you’re supposed to know details about the listed item. Retyping this, IMO, would essentially be retyping the notes which would make the document extremely long, involve a major time investment, and not add much value to the study material that we all already have. I think the usefulness of this document is not necessarily what this thread was started for (i.e. SAMURAI) but rather to look down the list and say ‘do I know what’s involved in the Fixed-income arbitrage hedge fund strategy’? If not, head to that section of the notes. Thoughts? Opinions?
This supposed to be a review tool anyway. I agree with Bankin’ that a lot of topics do not relate of 09.
Bankin’ Wrote: ------------------------------------------------------- > I’ve quickly come to realize that many of these > lists do not need to be memorized, but rather > you’re supposed to know details about the listed > item. > > Retyping this, IMO, would essentially be retyping > the notes which would make the document extremely > long, involve a major time investment, and not add > much value to the study material that we all > already have. I think the usefulness of this > document is not necessarily what this thread was > started for (i.e. SAMURAI) but rather to look down > the list and say ‘do I know what’s involved in the > Fixed-income arbitrage hedge fund strategy’? If > not, head to that section of the notes. Thoughts? > Opinions? Going through looking up some of the items has reminded me of stuff to review. It’s like exercise, you can’t do the same thing every day or you’ll burn out. I’ve covered all the material once now and I’m in review mode to hit the important areas. Filling out a few items on the list is a nice break from memorizing, and who knows maybe one or two will come up on the exam and I will remember it from having done this exercise.
^ totally agree
Factors that promote chronic inefficiencies: VATFRIPPHICD Valuation Ambiguities Trading Frictions Rebalancing Inconsistencies Policy Portfolios (overly rigid) Herding Imbalances in Capital Flows Conflicting Data
Sorry to drop by so late, been caught up over the last few days with work…i see that parts of the paper have already been assigned…pls. let me know if there parts of it that you would like me to help out…i know its prolly a bit late and you guys must be right in the middle of it, but if there’s anyway i could contribute…email me at sparty419 @ gmail . com thanks…
GetSetGo , Dwight and Magix, Thanks for taking the lead. Can you please send me the list to amitp.cfa@gmail.com , once you guys are done Thanks again
Forgot to thanks derswap07, Bankin,PatKeenan ,heer… DId not know there was page 2 on this topic:) If you guys need any help , let me know…
Hey Guys, I have been out on work and did not look into this for quite sometime. Can somebody please email me the list on nitinagarwal46@gmail.com. Thanks PatKeenan ,heer, derswap07, Bankin… I am ready to help iof there is anything like this in the future.