Name the four types of forecasting tools
Asset classes appropriately specified if: -Assets in class are similar (descriptive & statistical perspective) -Assets not highly correlated -Inidividual assets can’t be classified into >1 class -Cover a majority of all possible investable assets -Contain a sufficiently large % of liquid assets I’ve tried to come up with an acronym for these, but so far my best way to remember is SSCCM (Similar, Sufficiently large, Correlation, Classification, Majority).
“Name the four types of forecasting tools” 1. Statistical tool -shrinkage -time series 2. Discounted cash flows 3. Multifactor models 4. Equilibrium model (i.e. ICAPM)… not sure about this one. ---------------------------- 1. List the properties of a liquid market
^ In the disounted have to make sure to include the Ginold/Kroner with Income= D/P - S/O Nominal Growth= i + g Repricing= change in PE ______________________________________ Transparent Liquid Assurance of completion How about- name 4 or 5 of the leading indicators (I think there are 8 or 10)
^ I’ll take a shot: Stock prices Inventory levels (manufacturer’s orders maybe?) interest rates M2 unemployment claims something with housing that’s all I got
Leading indicators - Money Supply, - Interest rate spread - Stock prices - Avg weekly hours - Consumer expectations Lagging - Inventory to sales ratio - Consumer price index
Sick thread so far, but do you guys/gals think all of this is necessary? I know they’ll be a question or two on rote memorization, but for the several hours it would take (probably more, actually) to memorize all this shee-aht, I’m just gonna focus on the core concepts instead.
Skillionaire, what core concepts? Examples? There are so many lists to memorize.
Slash Wrote: ------------------------------------------------------- > Skillionaire, what core concepts? Examples? > > There are so many lists to memorize. Just actual calcs, and understanding duration effects, hedging futures, swaps, etc., etc. I can’t believe there’s gonna be THAT many questions of “List the X reasons of Y”. I could be wrong, but I don’t think I am…and generally 1/2 the list is intuitive anyway, so if I get half credit on one or two short answers and just destroy the rest of the test, I can live with that. I guess my point (poorly said until now) is that these lists that you guys are focusing on are going to (IMHO) at best comprise <5% of the test, yet they require as much of a time suck to memorize as would learning all the real estate equations, tax equations, options strategies, and much more.
The repetition helps out tremendously from my end. My memory sucks and if I don’t keep going over it, it won’t be there. Maybe the most important… what do you save until the last 2 days to attempt to memorize so you don’t lose it?
GMofDen Wrote: ------------------------------------------------------- > The repetition helps out tremendously from my > end. > My memory sucks and if I don’t keep going over it, > it won’t be there. > > Maybe the most important… what do you save until > the last 2 days to attempt to memorize so you > don’t lose it? My name and candidate number…flashcards help 
List the reasons why emerging market debt is becoming more ideal to invest in.
lagging also unemployment
SS7 Sources of Excess Return for Bond Portfolio M Market S Sector D Duration Management O Outside the Benchmark C Currency
I bombed an old exam question because of the one listed above Got to remember that one. MSDOC. gracias.
I agree with skillionaire, that memorizing a list will not help you. L3 is more about the why, than the what. (if that makes any sense) I mean everyone should know RRTTLLU, but only if it helps remember when creating an IPS you need to include the Risk Tolerance, Return Requirement, Time Horizon, Tax Concerns,Liquidity Requirement, Legal & Regulatory Requirements, and Unique Circumstances. More important is how the lists help you remember and apply the material.
Totally disagree. You can know the theory and reasoning behind it but if you don’t properly state what they are asking for then you are SOL.
alimesoda Wrote: ------------------------------------------------------- > SS7 Sources of Excess Return for Bond Portfolio > > M Market > > S Sector > > D Duration Management > > O Outside the Benchmark > > C Currency You forgot to add Credit Analysis
skillionaire Wrote: ------------------------------------------------------- > Slash Wrote: > -------------------------------------------------- > ----- > > Skillionaire, what core concepts? Examples? > > > > There are so many lists to memorize. > > > Just actual calcs, and understanding duration > effects, hedging futures, swaps, etc., etc. > > I can’t believe there’s gonna be THAT many > questions of “List the X reasons of Y”. > > I could be wrong, but I don’t think I > am…and generally 1/2 the list is > intuitive anyway, so if I get half credit on one > or two short answers and just destroy the rest of > the test, I can live with that. > > I guess my point (poorly said until now) is that > these lists that you guys are focusing on are > going to (IMHO) at best comprise <5% of the test, > yet they require as much of a time suck to > memorize as would learning all the real estate > equations, tax equations, options strategies, and > much more. Good thread but I agree with Skillionaire. It’s just too much to memorize considering the number of points we may get as a result.
M: Market Opportunity I: Investment Process O: Organization P: People T: Terms and Structure S: Service Providers D: Documents Process for due diligence on alternative investments. Remember “write up” as last step. Stands for MIO PTSD, or “my” in Italian, “PTSD” which means post traumatic stress disorder, which is what this exam is giving me. This is the process for institutional- If private wealth, add: 1) Tax issues. Frequently alternative investments have partnerships and other ownership forms with unique tax structures 2) Suitability. Holding periods may not be suitable to client 3) Decision Risk. Extreme returns may make client want to change strategy quickly at a disadvantageous point 4) Equity Concentrations. Ensure you are not adding too many illiquid investments