it was 106.25% or something like that…
PJ, did you add or geometrically link the rr? I think that may speak to the difference. If that’s the reason i’d be suprised if they deducted credit for either.
former trader Wrote: ------------------------------------------------------- > Corrupted Wrote: > -------------------------------------------------- > ----- > > Corner Portf: 3-4? then 107% for the 2nd Q? > > > got same but i realized that corner 3 and 4 had a > standard deviation of over 10%. Yeah, this cost me good five minutes as I didn’t know what to do with the standard deviation. I used exact return ((1.087 X 1.0007) = 9.46% and ended up with the result sigma < 10.18%. The problem was not knowing how much less. I just said that plus round it down. That last smart ass comment is gonna cost me. I wonder if the answer would be none in this case and we need to have client revise his objectives. 107.8% is correct. -------------------------------------------------------------------------------------------------------------- I think CFAI messed up on this one. I dont think they should penalize someone for using geometric method of calculations when they themselves promote it 
yea, the last one was representativness… although overconfidence was present there as well.
Buying more shares at lower prices and lower prices is that overconfidence or regret minimization? In hindsight, I probably should have answered overconfidence but chose Regret Minimization. I now think it’s overconfidence because more shares were actually purchased. Chose Overconfidence for the guy who opened up a discount brokerage account to trade technology stocks.
25%, 75% for portfolios 3/4 and then 106.XX when combined with risk free asset.
I would say that failing to accept the loss and buying more was regret minimization.
another vote for regret minimization…
same here the notes specifically mentioned regret minimization would possibly lead to risk seeking behavior, which is buying more losers in this case Git R Done Wrote: ------------------------------------------------------- > I would say that failing to accept the loss and > buying more was regret minimization.
Oh god 'I have a horrible feeling I didnt do the last AM question from not seeing it. Could someone please allow me to kick myself in the nuts by telling me the topic of the question so that i will recall if i didnt do it?
What was everyone’s guess as to the overall risk tolerence for the individual portfolio. I said above-average.
This was a good call, I also spent way to much time rewriting my answars for the st dev max. it says required real return 8.7 plus management fee 0.7 if CFAI literally means “plus” then the required return would be 9.4% you get weight 25% and 75% the std dev is exactly 10% but if you do (1+8.7)(1+0.7)-1 then std dev is over 10% I don’t know what they are looking for.
to not reveal the details of the questions, let’s just say use future contracts to hedge currency risk. elem100 Wrote: ------------------------------------------------------- > Oh god 'I have a horrible feeling I didnt do the > last AM question from not seeing it. > > Could someone please allow me to kick myself in > the nuts by telling me the topic of the question > so that i will recall if i didnt do it?
what’s the answer for GIPS return presentation/ calculation 12.3% in 2006 and sth in 2007?
Brad Pitt Wrote: ------------------------------------------------------- > what’s the answer for GIPS return presentation/ > calculation > > 12.3% in 2006 and sth in 2007? It was choice a - can’t remember the exact numbers, but you just chainlinked the quarterly returns for each year (I think).
averaging down = getevenitis = regret minimization, in this case anyway… it’s really loss aversion, but that was not an option.
They better give almost full credit for those who used geometric calculations vs additive for corner port problem. I may even write a preemptive letter.
They better give almost full credit for those who used geometric calculations vs additive for corner port problem. I may even write a preemptive letter. ___________________ It’s not an inflation to multiply. You pay fee’s on startin sum of assets, so you shuld PLUS not Multiply (got the same trap and spent 30 min on it… 
anyone knows when they will publish this year AM paper?
I believe it was November when they put the 2007 one out, but it may have been as early as August. actuaryalfred Wrote: ------------------------------------------------------- > anyone knows when they will publish this year AM > paper?