jdane416 Wrote: ------------------------------------------------------- > CFABLACKBELT - > > In regards to the AM I agree with you on the > following: > > AM: > Q16, Q60 - The other ones, even though I missed > some, I can see Schweser’s logic for how they are > correct. > > PM: > Q40 - VaR estimates both the magnitude AND > probability; not sure why the answer explanation > says it doesn’t Ya I was just looking over Q40 in the PM. The answer explanation is even worse. Says that VAR doesn’t measure probability… What about your thoughts on AM Q4 and Q33? I am 100% confident Q4 is incorrectly written. Not sure whether I am missing something on Q33. I retract my complaints for Q18 and Q34
Q50 and Q51 in the PM… For Q50… this isn’t a FRA so why are we treating it as such. Shouldn’t we be finding the fixed CFs and also the return from the index here??? What am I missing. Q51. Why aren’t we using the last period as well with the rate of 6.25%???
EDIT not sure why it reposted my last message. But I was just saying that I noticed some of the answers explanations were messed up as well and this is unacceptable … I mean seriously how the hell are you gonna sell a product like this and have this many errors!
Ok I see why in problem 51. I was using the LIBOR after 180days instead of just the beginning LIBOR.
Few remarks to the Schweser Mock Exam AM to CFABLACKBELT comments: Q4: Very poorly written. I agree with you. According to Research Objectivity Standards covered employees are prohibited from purchasing or receiving securities prior to an IPO for subject companies and other companies in the industry or industries assigned. I guess given that “hot” issues are not mentioned explicitly in the Standards, Answer Choice C is the best answer, but I definitely would take the word “only” out of the answer choice Q18: Here it is important to distinguish between monetary and non-monetary assets. Since Garden Supply has more monetary liabilities than monetary assets, a hyperinflation is the best that can happen. The monetary debt is less worth because of the inflation and the overall result is a purchasing power gain! Q33: No B and C are different answers. C is talking about an expectation where interest rates will go. Interest rate parity, however, is not about future expectation but about CURRENT rates. Q34: The Yen is still going to appreciate. However, since the US lowered the interest rate, the interest rate gap is reduced. Therefore, the appreciation of the yen is going to be less than before the money market intervention. Q60: I agree with this comment. Neuerungen should at least keep its value. - Show quoted text - AM Q4: C is not correct. Per CFAI text, if you look into research and objectivity standards page 169. 7e: it says: “prohibit covered employees and members of their immediate families from purchasing or receiving securities prior to an IPO for subject companies AND other companies in the industry or industries assigned.” A should be the correct answer as it refers to IPOs for subject companies. Q16: Inventory was evenly purchased throughout the year, so we should be using the average rate for COGS for both right? Q18: why would it be a purchasing power gain? An asset exposure in a hyper inflationary environment would lead to a loss… Q33: holding the real rates constant… (IRP), wouldn’t B or C essentially be the same thing… Q34: why would the Yen expected appr. decrease?? Monetary expansionary policy is being enforced in the US thus depreciates the dollar and should see the yen appr relative to the dollar right??? Q60: as another person pointed out. Neurungen would loose business in Malaysia due to the higher Euro, but should gain in England because the pound appreciated to the Euro. Without any other information Answer should be B.
I agree that some of these questions were poorly worded and possibly wrong. Does anyone know if Schweser plans to post Errata for this Mock?
Just took the online AM section and received a 75. Will be doing the afternoon session after lunch. At face value, the ethics questions in the AM section were tricky indeed and reminded me of the actual exam. I got a 3/6 on the vignette, which I’m not too happy about. The online format is a pain since you have to keep scrolling up and down and what not.
Took the PM section and got a 63. Wow, what the fuck. That is a real downer right there.