16 - was it just the credit risk, or credit risk minus whatever can be recovered? 17 - just to be clear, the answer was “limit exposure to any one counterparty” right? 24 - covariance was a low blow macro destroyed me…easy guess what i’ll be studying tonite 32 - should the endowment have went with corporate bonds? lessons learned on options strategies. I just told myself I’d be ok if I knew the fundamentals of the strategy. Ie. buy 1 call low, 1 call high, sell 2 calls…and when I needed to know the maximum payoff I’d just use extreme value high/low stock price scenarios to find out max payoff. BAD IDEA!! There are definately instances where this assumption would not work on the exam. 43 - where the hell did effective beta come from? ? I get it now…but geez 57 - i can’t believe i got this one wrong but the negative cash flow is throwing me off. Can someone help me out with this one. The way I read the problem, the ending market value was ~$1million higher even after a negative cash flow (ie. money taken out of the fund). So I added it back and ended up getting a return of like 30%. Why would you subract it if the market value of the position is after the cash left the portfolio??
16 - only credit risk 17 - yes 24 - .0243 if i recall right 32 - don’t recall this Q 43 - Easy, stalla covered it 57 - plug and chug.