asdffdsa Wrote: ------------------------------------------------------- > i dont understand that either s23, but currency is > my weak topic… i thought you were supposed to > take the bond with the highest yield and then just > hedge out all the currency risk. there’s probably > more to it than that though. This was exactly my thinking but see above.
Once you fully hedge, you no longer need to worry about the currency movement. But I understand where you come from . s23dino Wrote: ------------------------------------------------------- > bluelily Wrote: > -------------------------------------------------- > ----- > > hedged return = domestic risk free rate + > (foreign > > yield - foreign risk free rate) = domestic Rf + > > foreign excess return > > since Singapore Rf stays the same, whichever > > country has the highest excess return is the > best > > one for full hedged return. > > > > For breakeven analysis, I just picked whichever > > that has the smallest duration., based on yield > = > > delta(yield)/duration > > > > > > s23dino Wrote: > > > -------------------------------------------------- > > > ----- > > > Hey thanks, the consenous on the foreign > > currency > > > was Japan, Japan, UK? > > > > > > I still dont understand how Japan can have > > highest > > > hedged return UK had highest yield? > > > Yea this sounds correct I just got so confused > over the expected change in curreny rates and the > cash rates in each country? I keet thinking that > the differences in the cash rates is what the > currency would depreciate by but then got confused > since they showed expected depreciated. So does > anyone know if it was Japan, Japan, UK for sure?
bluelily Wrote: ------------------------------------------------------- > hedged return = domestic risk free rate + (foreign > yield - foreign risk free rate) = domestic Rf + > foreign excess return > since Singapore Rf stays the same, whichever > country has the highest excess return is the best > one for full hedged return. > > For breakeven analysis, I just picked whichever > that has the smallest duration., based on yield = > delta(yield)/duration > thats from level 2, right?
I don’t think so. It’s on the notes, positive. former trader Wrote: ------------------------------------------------------- > bluelily Wrote: > -------------------------------------------------- > ----- > > hedged return = domestic risk free rate + > (foreign > > yield - foreign risk free rate) = domestic Rf + > > foreign excess return > > since Singapore Rf stays the same, whichever > > country has the highest excess return is the > best > > one for full hedged return. > > > > For breakeven analysis, I just picked whichever > > that has the smallest duration., based on yield > = > > delta(yield)/duration > > > > thats from level 2, right?
the fact that Chad is borderline to pass shows how an examination process can be flawed and why many employers prefer experience rather than a candidate with more degrees and designations. anyone who has been in the forum the last few months knows how deep Chad’s understanding of the concepts were. He even knew many subjects well beyond the scope of the curriculum. I’m sure all it would take is a 5 minute interview with him to realize that. Hell, I can pass the exam and I couldn’t carry a profound conversation about many concepts in the curriculum like he can. I mentioned to Chad a few months back on the forum that his writing style would make it a challenge for him to complete the exam because all CFA wants is 1 sentence blurbs. Not sure that’s the best way to test someone’s knowledge.
guys i am curiosu about one thing when you guys assume a 50% in Am…does that mean you missed a few questions? i missed q, 10,11 (whole) and question 8,9 (half). so totlal 36 points i did not even attempt. and in the remaining i assume 70% which gives me a total score of 50% overall…am i being overly optimistic? if you gusy did not miss those question (speciallu the last few which were easy), should you not assume 60%+ atleast. please give your views
bsc2010 Wrote: ------------------------------------------------------- > guys > > i am curiosu about one thing > when you guys assume a 50% in Am…does that mean > you missed a few questions? > > i missed q, 10,11 (whole) and question 8,9 (half). > so totlal 36 points i did not even attempt. and in > the remaining i assume 70% which gives me a total > score of 50% overall…am i being overly > optimistic? > if you gusy did not miss those question (speciallu > the last few which were easy), should you not > assume 60%+ atleast. > please give your views Depends on the quality of your answers to the questions you attempted properly. No one can tell how well answered, perhaps not even you.
former trader, that’s a nice compliment about me embedded in your last post, and I just wanted to say that I appreciate it (and also can appreciate the point you’re making). I also accept the criticism that I am often wordy and I’m going to work on it. For myself, all I need is a few more of those 5-minute interviews. 
After looking at my own scores, I actually suspect I’ll squeak by, and I can also blame myself somewhat for not doing enough timed practice exams beforehand. But you’re also right that experience and common sense are pretty important too, and these exams don’t really get at that part. One can have whole alphabet after your name, and doesn’t necessarily mean you can produce value.
AM ~ 40% PM ~ 80%
Jimmy, just a question about how did u solve corner portfolio question? Did you add management fees or compounded?
50% AM 70% PM Seeing that post on the 2003 MPS made me a bit more comfortable, but I wouldn’t exactly feel very proud passing with such a low AM score.
Revised score: Morning: 50% - 60% PM: 70% - 80%
Keep_going Wrote: ------------------------------------------------------- > Jimmy, just a question about how did u solve > corner portfolio question? > > Did you add management fees or compounded? Did geometric first but noticed the problem with the standard deviation, then switched to additive and everything worked out fine.
bchadwick Wrote: ------------------------------------------------------- > OK, I just reviewed the PM thread, using the > mosaic theory, and counted up what looks right and > wrong. > > So far: > > Almost certainly right: 17 > Almost certainly wrong: 7 (not quite as many as I > thought; anchoring bias, perhaps?) > Difficult to say: 6 > Remaining: 30 > > So, assuming that I have a 50% chance of getting > the “difficult to say” problems correct, that > would make 20 correct, 10 wrong, or 66%. > > If this is representative of the “remaining” > problems, that would suggest a 66% in the PM. > However, the less challenging stuff probably never > made it on to the thread, so 68% or 70% might be > within reach. > > > As for AM, it looks ugly. I’m hoping for 50%, but > worried that even that might be optimistic. I like the way you’re thinking… Almost certainly right: 16 Almost certainly wrong: 4 Difficult to say: 8 Remaining: 32 Assuming your rationale, I’d get a 71% (20/28). I must be the oddball, but I feel like I did pretty well on the AM. I know I messed up two questions, but I felt extremely confident about 1-3 and I think I could have gotten 75 of 81 possible points. In all: 65%-75% on the AM 55%-65% on the PM I need to pass…my wife wants to have a baby (it would be our first) and having a baby around when studying would be a nightmare, I imagine.
40-50 AM 70-80 PM I’ll be on the border depending on where it falls in the range. Hopefully i did well on the 15 or so questions i can’t remember in the PM. I know i missed at least 7 questions, but i am very confident on at least 25 questions Ethics- between 7-10 out of 12 Equity- 10 of 12 GIPS- 4 of 6 Econ- 3 of 6 Alt- not sure how many there were but 4 of 6 FI- can’t remember at all
If I had to guess an exact score for each section: AM: 30% PM: 80% Range, outside of which I’d be surprised: AM: 20-45% PM: 65-95%