Only 10 Full Study Days Remain!!

It’s after midnight (eastern time) which means that there are still 10 full study days left!

How is everyone doing mentally? Even though I still have trouble valuing swaptions, understanding what the f$%k an ARCH model is, going up, down, and around the bid\ask spread in order to make a riskless triangular profit, memorizing the Alt. Inv. formulas that I come across like once every 14th hour of studying, not writing run-on sentences, figuring out the difference between current and temporal method on one accounting formula in less than 15 minutes, correctly solving residual income problems, not mixing up the FRA notation with the fixed income forward rate notation, and the fact that I come across at least one formula a day that I swear to God I’ve never seen before, I’m feeling great! 10 hours can equal 100-120 hours of additional study time!!!

Just venting after a long 12 hours of studying. I’d share these feelings with my friends but I’m not sure they know I exist at this point and I know they wouldn’t get it. But seriously, stay strong everyone and keep studying.

I think I have a girlfriend somewhere…

what is this going around bid/ask spreak for riskless triangular profit you speak of? like where is this?

oops I apologize… I was just poking fun at triangular arbitrage with bid\ask spreads, please ignore.

Hooray you’re not screwed!


so is it not in level 2 curriculum then? i’m a little confused, lol.

Triangular Arbitrage is definitely in level 2 curriculum (ECON section). You may be asked to calculate/determine if triangular arbitrage exists. They may give you quotes without a bid/ask spread (e.g., USD/CAD = $1.05) and/or they may give you quotes with a bid/ask spread.

I struggle with triangular arbitrage using bid/ask spreads (which is in curriculum). A very common saying to aid people with bid/ask conversions is “up the bid, down the ask.” Therefore, when I stated " going up, down, and around the bid\ask spread in order to make a riskless triangular profit," I was just poking fun at that saying. As far as I know, there is no around the bid/ask spread. But there is most definitely triangular arbitrage in the curriculum (NOT riskless triangular profit

I really hate to confuse anyone this late in the game, apologies.

lol okay, yeah my econ review isn’t until this weekend. it’s been a while since i’ve touched it, evidently. thanks for the feedback! hah

Arbitrage = riskless profit therefore “riskless triangular profit” = triangular arbitrage in a roundabout way, and it’s definitely in the L2 curriculum. The phrases “up the bid and multiply” and “down the ask and divide” helped me immensely last year.

This is my 3rd go at L2 and I was still getting the calculation wrong on the triangular arbitrage on the mocks. Had to re-read it again in the CFAI books and now it all makes sense.

I hope the actually exam won’t be so cruel to ask such a question…bwuahaha…sif.

This thread made me LOL! Thanks for the laughs, guys :slight_smile: The only thing making me feel better is knowing I’m not alone in hating this f’ing exam. Things I am struggling with:

  • confusion on Econ as a whole

  • FRA - pensions

  • derivatives - can’t do swap calculations for the life of me

  • corp finance is always a hit or miss for me in practice tests

  • Ethics - I haven’t been doing too well on practice tests, I get like 50-67% per item set max

  • memorizing the alternative investments formulas

  • how to not feel sleepy as soon as I sit down to study every evening

12 hours of studying!!! Holy cow - I can barely muster 3/4…

^I’ve been drinking way more coffee than any reasonable amount a normal human being should intake.

What is everyone’s strategy for studying/brushing up on Ethics at this time? I tend to get 3 or 4 questions per ethics vignette correct on the mock exams and I would love to bump this up. I thought I’d do 50 problems from the Qbank every day until the test and review my mistakes from the mocks. If anyone has any advice, I’m all ears.

Q Bank is great - it should help you. But I’m afraid Ethics is one area where I just cannot seem to improve on.

Thanks, Portfolio Manager. It’s one of those things that I underestimate, thinking I’ll do well, only to find that I get mediocre scores on the mocks :frowning:

Nobody can - it’s weird. Especially in L2 wwhere they ought to be asking tricky one’s.

I just found out it’s ok to say “CFA charter is the highest credential in the investment industry…” That was a complete surprise. It was in a mock - i don’t know how I have it but I guess I would’ve printed it during the past 5 months of prep

^ Seriously? That does not sound right.

^Yeah even I was like wtf. But it’s on a sample cfa exam I have from CFAI - I have no idea how I have it but it was in a pile gathering dust and I just decided to glance at while I eat my dinner (obviously I lost my appetite when I got this wrong).

Here’s the exact statement

“The CFA charter is the highest credential in the global investment management industry. As chartereholders we are committed to the highest ethical standards. Completion of the program has dramatically improved the team’s portfolio management knowledge and their ability to acheive better performance results”.

In the answer it states the statement is in compliance with CFA Institute Standards of Professional Conduct.

Maybe this is one of those cases where CFAI messed up. who knows!

Dude. I love this post. Haha I feel like I will be alive again when this is over.

I don’t think FRA notation will be an issue on exam. The thing that helped me with swaps was to “get out of discount land and into DISCOUNT FACTOR land”. I wrote this on a note card and it stuck for some reason. Treat everything as a discount factor… Coupons and Principal… And subtract what you pay from what you receive. I try to keeep those simple.

The currency stuff is what gets me. The Financialexamhelp123 articles have been a huge help.

That does not surprise me.