Reading 55 - The Theory of Active Portfolio Management

[olthefish]

Hi all, a quick query:

When, at the beginning of this chapter, the curriculum says: “Candidates are not responsible, within Reading 55, for deriving or memorizing the formulas introduced in Sections 4-6” (Treynor-Black Model, Multifactor Models & Active Portfolio Management, and Imperfect Forecasts of Alpha Values and the use of the Treynor Black Model in Industry) – how literally can I take this - basically I don’t trust anything the book says like that.

Does it really mean I can just read and understand the material rather than learn the calcs behind it or will I actually have to learn it because the the CFA bloody love a good trick?

Thanks guys.

[S2000magician]

@olthefish

Hi all, a quick query:

When, at the beginning of this chapter, the curriculum says: “Candidates are not responsible, within Reading 55, for deriving or memorizing the formulas introduced in Sections 4-6” (Treynor-Black Model, Multifactor Models & Active Portfolio Management, and Imperfect Forecasts of Alpha Values and the use of the Treynor Black Model in Industry) – how literally can I take this - basically I don’t trust anything the book says like that.

Does it really mean I can just read and understand the material rather than learn the calcs behind it or will I actually have to learn it because the the CFA bloody love a good trick?

Yes, that’s what it means.

@olthefish

Thanks guys.

My pleasure.