philly20 Wrote: ------------------------------------------------------- > > > You have to go with Growth instead of small cap on > this one…im positive. The question specifically > mentioned “utility and energy stocks”. They were > trying to get you to lean towards Growth I think i put growth too, but I just checked the secret sauce and it only mentions small caps.
actuaryalfred Wrote: ------------------------------------------------------- > trading expenses are deducted both for gross or > net that was a tricky question…but the answer is both of them would be lower…gross and net
equity_research_nds Wrote: ------------------------------------------------------- > i was reading through a book and have few queries > > would you disclose you arrangement with an vendor > to your clients and employeer? > > does the fixed rate mortgage pass through have > call risk ? > > is reviewing trade allocation policy at end of the > month ok? > > would increase in trading expenses decrease both > gross & net of fee return? Pass through- yes call risk…doesnt matter if its fixed. People can still refinance I think reviewing at the end of the month is fine. How bout that question on ethics. Can you receive the material non public info from your broker…if you do, terminate the relationship or just keep it confidential and not use it??
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what’s the difference between discretionary fee paying and discretionary non-fee paying. For example, if someone runs a non-fee paying account for his wife and there’s a IPO, does he have to treat his wife’s account like all others even if it’s non-paying account?
I said that account should be out of the IPO, a guess
i also think so because she’s not a fee paying client.
Its not even because she is non fee paying…the main thing is that shes his wife. Its different if it was your parents. Your wife is directly tied to you financially and you are a beneficial interest.
I don’t get the MBS Fixed had contingent claim risk, isn’t that just for callable/putable bonds… and I know the investor could prepay but I thought that would be prepayment risk. And no to cap risk right it was fixed?
but didn’t he take her out of the ipo if it was oversubsribed. i said it wasn’t a violation
s23dino Wrote: ------------------------------------------------------- > I don’t get the MBS Fixed had contingent claim > risk, isn’t that just for callable/putable > bonds… and I know the investor could prepay but > I thought that would be prepayment risk. And no to > cap risk right it was fixed? that was my belief too. my father (whose being running accounts for 50 years) says that MBS are listed as “callable at any time” looks like -1 for me.
^^^ that is complete cr@p, all mbs are callable…?
thetank Wrote: ------------------------------------------------------- > emarkhans Wrote: > -------------------------------------------------- > ----- > > sandy_capone Wrote: > > > -------------------------------------------------- > > > ----- > > > borrower quality is the right choice. > > > > > > Risk free rate is not correct because it > > > correlates with prevailing interest rates (or > > > federal funds rate) which is explicitly > listed > > as > > > one of the factors on which it depends. I had > > all > > > the factors in my notes and felt like an > idiot > > for > > > spending so much time on trying to remember > > these. > > > > I disagree that the repo rate closely > corresponds > > with interest rates as a whole in the economy, > > which is what the choice was. > > > > I also disagree that Bear Stearns the day > before > > it blew up could have got repo money at the > same > > rate as Goldman, even for the same collateral. > > > > However, you will have the right answer and I > will > > have the wrong. > > I agree, if anything, quality of borrower should > be the MOST important Quality of the borrow should make a difference, but not in CFAI land. It doesn’t, 100% sure of that one.
I remember a question with answer cap risk, anyone remember what was the answer?
oskigo Wrote: ------------------------------------------------------- > philly20 Wrote: > -------------------------------------------------- > ----- > > > > > > > You have to go with Growth instead of small cap > on > > this one…im positive. The question > specifically > > mentioned “utility and energy stocks”. They > were > > trying to get you to lean towards Growth I > think > > > i put growth too, but I just checked the secret > sauce and it only mentions small caps. Here was my logic on this one: The socially conscious portfolio had nothing to do with the other portfolio via the wording of the item and question. They said it wanted to steer clear of basic materials, utilities, and energy stocks. Nothing about capitalization. Those industries are value industries, therefore the bias would be toward growth. It wasn’t a matter of remembering generically the two biases socially conscious portfolios show.
former trader Wrote: ------------------------------------------------------- > what’s the difference between discretionary fee > paying and discretionary non-fee paying. > > For example, if someone runs a non-fee paying > account for his wife and there’s a IPO, does he > have to treat his wife’s account like all others > even if it’s non-paying account? Fees are not a factor. He still has fiduciary duty toward the account, and has to deal fairly. It was in the CFAI book actually. Only if he has direct interest in the account ( which was not stated in this case), would he have to follow clearance procedures, but still has to allocate fairly.
philly20 Wrote: ------------------------------------------------------- > equity_research_nds Wrote: > -------------------------------------------------- > ----- > > i was reading through a book and have few > queries > > > > would you disclose you arrangement with an > vendor > > to your clients and employeer? > > > > does the fixed rate mortgage pass through have > > call risk ? > > > > is reviewing trade allocation policy at end of > the > > month ok? > > > > would increase in trading expenses decrease > both > > gross & net of fee return? > > > Pass through- yes call risk…doesnt matter if its > fixed. People can still refinance > > I think reviewing at the end of the month is > fine. > > How bout that question on ethics. Can you receive > the material non public info from your > broker…if you do, terminate the relationship or > just keep it confidential and not use it?? I said terminate because the condition the broker put on them getting it was not making it public.
^ but wouldnt you assume that a his wifes acct is a beneficial acct for him?
philly20 Wrote: ------------------------------------------------------- > actuaryalfred Wrote: > -------------------------------------------------- > ----- > > trading expenses are deducted both for gross or > > net > > > that was a tricky question…but the answer is > both of them would be lower…gross and net Gross is lower, by definition so unless managment fees were changed, net would be lower.
mo34 Wrote: ------------------------------------------------------- > Fees are not a factor. He still has fiduciary duty > toward the account, and has to deal fairly. It was > in the CFAI book actually. Only if he has direct > interest in the account ( which was not stated in > this case), would he have to follow clearance > procedures, but still has to allocate fairly. no since it’s his wife’s account and obviously he has an interest other clients must be put first. if it is a family account that he doesn’t have an interest in he should treat them like other clients.