Today: Keep it light, go over the material in a broader sense (Quicksheet, some review). I plan to read Ethics and go over GIPs today in greater detail. Then I am going to pick a topic I feel I should brush up on in a SS and go over that. Tonight: Pure Chillin. What’s your plan?
I have two more hours to go over things. Than, shopping, dining out, also it is my birthday, so a couple of glasses of bubly. I will not try to go to bed early, I will go to bed when I start feeling sleepy.
My short term memory is the strongest so unfortunately it makes sense for me to do a decent amount today - I wish I was someone who could confidently do nothing on the final day. Happy b’day btw - not the best day to have it though I guess!
Mostly soft stuff today, Ethics, Behavioral, EM, GIPS May try to make out a key formulas sheet, Grinold Kroner, Singer Terror, Futures Contracts Reveiw a few key things Box Spread Synthetic cash (when to use FV and when to use PV for the futures computation) Global Attribution PVT Weath tax strategies
yeah, reviewed those tax strategies last night after seeing a thread reminding me they existed GRAT, CLT, CRT - - crap, still don’t think i could answer an essay on when each should be used over the other - advantages etc - - don’t waste time on box spread - - just remember, you lock in the risk free rate and if prices suggest anything different, there is an arb opp synthetic cash is FV - - its the hedging situations where you are simply “passing through the cash” where you just use PV - - that was bugging me for a while but think i’m clear there global att - yep - really just memorizing – but these calcs really don’t seem too complicated once you’ve run through an example know you didn’t ask for my opinion - - just quizzing myself really
what’s Singer Terror?
I was just looking at maps deciding where I was going to go fishing after the test. I love fishing 
owe the 4 yr old a day - so i’ve got a date at kung fu panda sunday
^— damn i want to see this movie!
get a 4 yr old and go
i will get 8 year old. “8 year olds…”
sounds illegal
not for Lebowski
so i’m reviewing the mock answer key - - really helpful, good use of time “The description of trading activity is correct” - - oh yeah? so what did she say trading activity was??? useless
Don’t understand why the mock does it that way. Kind of a ripoff.
Singer Terror (Terhaar) = model of computing ERP for integrated and segmented markets. ERP for segmented market is basically assumed to have the same sharpe ratio as the world market, but scaled to the volatility of the local market ERP (Segmented) = [World Sharpe Ratio]*[Local Market SD] ERP of an integrated market is equal to the world Sharpe Ratio scaled to the volatility of the local market times the correlation to the world market. ERP (Integrated) = [World Sharpe Ratio]*[Local Market SD] * [correlation to world market] Did I get that right? I just call it Singer Terror (because it might be on the exam)… or maybe the Terror Singer.
Dont forget to add the liquidity preminum for emerging markets/developing mkts
^— It’s Illiquidity Premium. If they give you liquidity premium, they are screwing you.
Finish 2006 exam Go over 2007 exam Get Lunch Review the following topics for maybe 15 minutes a piece: Implementation Shortfall Credit Risk of Forwards Contingent Immunization Macro Att. Micro Att. Global Att. Look over one last time: GIPS Ethics AMC Cadbury Report Then scan over formula sheets and some random notes the rest of the day. Call it quits around 6 or 7 and hope for the best!