Hello everyone I’ve been copying-and-pasting some useful info for a while. Now the situation is reversed. I hope this isn’t any kind of copyright infringement. Thank you all! ____________________________________________________________________ This mnemonic is useful when trying to remember what goes below the line. ___________________________________________________ Anyone got any good ones? These are usually good for last minute prepping. I saw this one off another AF member: Type I Error - RTN (Reject True Null) Type II Error - FRFN (Fail to Reject False Null) Here’s two of mine: In regards to premium and discount bonds and the effect on CFO, just remember the opposite is true for CFF. CFO - premiunderstated/ discouverstated Utilitarianism - Communist Symmetry Principle - Capitalist Anyone got good ones? ________________________________________________ I thought of 3 and they may sound weird but this is what I thought of when I was studying. Sharpe Ratio - Michael Richards has a sharp tongue. (Market returns - risk free rate) / standard deviation. Market returns = Michael. risk free rate = Richards. sharp = standard deviation. Coefficient of correlation - Russians in San Diego. covariance / (standard deviation 1 * standard deviation 2). CCC is a Russian acronym which is correlation coeffiicent covariance. San Diego is standard deviation. Dow - Police department. Police = price weighted. Department = dow. The dow is a price weighted index. I said they may sound weird but I remember them. ________________________________________ In any case I found some mnemonics I’ve scribbled down with regard to the Code of Ethics. AICDR – II – RCIPJ – PPC – PIU – MIPC 1. ACT with INTEGRITY, COMPETENCE, DILIGENCE, RESPECT (*AICDR*) and in an ethical manner with the public, clients, prospective clients, and other participants in the global market. 2. Place the INTEGRITY of the investment profession and the INTEREST (*II*) of the clients above their own personal interests. 3. Use a REASONABLE CARE and exercise INDEPENDENT PROFESSIONAL JUDGEMENT (*RCIPJ*) when conducting investment analysis, making investment decisions, taking investment actions, and engaging in professional activities. 4. PRACTICE (*PPC*) and encourage others to PRACTICE in a professional and ethical manner that will reflect CREDIT on themselves and the profession. 5. PROMOTE the INTEGRITY of and UPHOLD (*PIU*) the rules governing, capital markets. 6. MAINTAIN and IMPROVE their PROFESSIONAL COMPETENCE (*MIPC*) and strive to maintain and improve the competence of other investment professionals. In any case I don’t understand how I could possible memorize that list for more than five minutes: 1. AICDR 2. II 3. RCIPJ 4. PPC 5. PIU 6. MIPC Maybe it’s easier in this way. 1. I SEE, DARJEELING FOR ALL. 2. AY-AY! 3. RECIPE (FOR SUCCESS IS A) 4. PEACHY 5. PIOUS 6. PIC ___________________________________________ Portfolio mgmt / Investment policy TURTLe T - Time horizon / constraint U - Unique requirement R - Regulatory /legal req T - Tax concerns L - Liquidation / earlier needs _________________________________ As a handy mnemonic, remember “he’s leveraged up to his ass/balls” means “he has borrowed a lot of money”. You may want to repeat this a few times until it gets tattooed onto your brain. ___________________________________ Ok, here’s a few that are guaranteed to be on the test, but make sure your in your last minute Level I prep that you’ve done the Schweser exam posted on this site. Here’s a couple that will put you over the top: 1. Know the 5 factors determining intensity of competition within an industry: Remember SERBS - The 5 factors that determine industry attractiveness: Suppliers of raw materials Entrance Barriers Rivalry Buyers (power over product/pricing) Substitute products 2. Know Risk from Lowest to Highest Remember: British Broadcasting Corp Has Silly Office Comedies All Fall Bill/Bond/Corp/House/Stock/Office(commercial RE)/Coins/Art/Futures 3. Assumptions underlying CAPM model" “CAPM Prices Hold Borrowers and Lenders; Taxes and Transactions ReMOVe RiSC” Investors are PRICE takers. (Eliminates negotiated deals.) 2. All investors have the same HOLDing period. (Eliminates time risk.) Investors can only BORROW and LEND at the risk free rate. (If not you’ll have two CMLs, two CAPMs and no equilibrium.) No TAXES and TRANSACTION costs. Investors are all Rational Mean Variance Optimisers. (ReMOVe) All investors have the same expectations for Return, Standard deviation and Correlation. (RiSC) 4. Portfolio Management Level I Steps in Decision Making Process = OSMAP OBJECTIVES STRATEGIES MONITOR (THE MARKET) ADJUST PORTFOLIO 5. Steps to carry out OSMAP = SEXPOP SPECIFY OBJECTIVES EXPECTED RETURNS POLICY STATEMENT OPTIMUM PORTFOLIO PERFORMANCE MONITORING 6. elastic and inelastic demand curves (economics)" If you have trouble remembering the difference between elastic and inelastic demand curves, remember that: Inelastic’ starts with a capital I, that is, a vertical line, so prices can move up or down but the demand remains the same. Similarly, ‘elastic’ starts with an ‘e’, which has a horizontal line in it, so demand can move to different levels but the price remains the same. 7. Know the characteristics of a good market Remember “I LIE” (nothing personal) Information (timely and accurate) Liquidity : marketability , price continuity and depth Internal efficiency low transaction costs External efficiency prices adjust quickly to new info _______________________________________________
wow. these are very complicated mneumonics… for bonds, I remembered doo and dfu… discount operations overstated/ discount financing understated also COupon rate < CUrrent rate < YTM (alphabetical)
I think you guys are crazy, easier to learn the concept then this…
yep definitely - esp on the day before!
I’m glad I learned it the long way…
i always remember a good glass of pinot NOIR Nominal Ordinal Interval Ratio (in that order…)
SPLIT Source of Financing Political and Economic Ties Legal Inflation Tax
BLFT - Brands, License, Franchise and Trademarks Capitalized
^i like that one… im picturing: im gonna capitalise a nice big sandwich… not just a BLT… but a BL(Fhkn)T that will come in handy…
I cant rem who mentioned this on Discount bond but when i saw the question, i felt so indebted!! =) “POODOU” premium CFO overstate, Discount cfo understate so you just take the reverse for CFF. Thanks!! It was brillant.
yeah, that’s a good one! Though i had to spend some time figuring it out
tsech Wrote: ------------------------------------------------------- > I cant rem who mentioned this on Discount bond but > when i saw the question, i felt so indebted!! =) > > “POODOU” > > premium CFO overstate, Discount cfo understate > > so you just take the reverse for CFF. > > Thanks!! It was brillant. This should be Premium Bonds CFO Understated and not overstated
Oh yes cfaboston, you are right. hehe… type too fast… its POU DOO
this thread actually came in handy during the exam… you june exam takers should take note… =)