Wow 80% on PM. And I literally got 1 out of 6 on first ethics and 3/6 on second ethics. I am totally screwed on Schweser Ethics and CFA Ethics stuff always goes fine. 5/6 on sample exam for CFA. I don’t get it whatsoever. I need to read the asset managers code once again though, that is for sure. On a side note doesn’t asset managers code now say that you must provide monthly statements and the first example said they were providing quarterly statements. “The Asset Manager Code Recommendations and Guidance (C 1) states that managers may not act on material nonpublic information, and that client holdings or pending trades should often be considered material nonpublic information. A sale of a large number of shares in a particular small industry is likely to decrease the price of other firms in the same industry as well. While the type of trading (cross front-running) that Schmidt has engaged in is difficult to detect, it is a misuse of material nonpublic information.” I hate you Schweser Ethics! That is incredibly subjective.
Managers must provide regular, ongoing performance reporting. Managers should report to clients at least quarterly, and when possible, such reporting should be provided within 30 days after the end of the quarter.
AM: 67 (Well, 66.6) PM: 75 I got a nice 3/21 on the tax question. Also, I think I have yet to get a correct required return question. I seem to always misinterpret any after/pre tax assumption when nothing is mentioned. And on 8a, aren’t we supposed to adjust for the contract’s Beta? I haven’t checked over the PM, but I’ll probably be back to complain about something there.
How long did it take to complete the exam? Trying to figure out when to take this.
It took me 2 1/2 hours for each AM & PM… but I’m a slow exam writer. But you might want to block off the whole time if you can… just to mimic the exam.
AM: 81% - Time: 2hrs first pass. Used up another 50min to check answers. PM: 78% - Time: 2hrs, 10min - including double-check over answers. For AM: Not sure what to make of the return calc in the first problem. I had everything right except for my final port value, which was only off by $5million. This is because I wasn’t sure whether we should back out the charity payment from the portfolio or whether it should be paid off with income… I chose to back it out since the charity payment was in less than 3 months. So my port return for the first year was 295, instead of 300 (6000-100)*.05=295. There were a few other sloppy questions IMO on schwesers part, but I expected that since last year’s LII mock was the same way. I would’ve saved more time if they had indicated whether we need to justify on the “agree/yes/accept, etc…” Not clear at all on those and I remember CFAI’s indicating when you needed to and didn’t need to. Would’ve gotten a 86% had I not messed up the core cap. question and remember to divide by the real RFR. I did some other stupid calculation with inflation. For PM: I actually thought this was pretty tough. I felt I had to make a lot of educated guesses. The only weak spot was the behavioral finance section (never heard of self-attribution bias, I also thought the MF pick was optimal since she is young and should be in higher beta investments). On the other sections, I just missed one or two here or there; no glaring weaknesses though. Ok. Time for a brew.
Massacred. 53 AM 60 PM Butchered by Everything in AM, and Ethics in PM. Those were the toughest ethics questions I’ve ever seen and SERIOUSLY!!! AM Q.1 PART A WAS NOT A 9 MINUTE PROBLEM!!! Well worth the 50 bucks though. Really glad I saw some difficult ethics, and required return problems. I know what I need to work on for the next two weeks. Ok. Time for a Goose
77% afternoon, will grade morning later. I missed 5/6 of the ethics questions 2nd item set. Wow. Looks like i’m not the only one though, Schweser ethics questions always suck.
One question for everyone: Do answers have to be incomplet sentences, or are bullet points fine? Complete sentences take much more time. Glad other people thought the ethics were ridiculous too.
I am kinda annoyed that the afternoon doesn’t have descriptive answers like the morning. I feel like i got taken. You want descriptions? $100 more please. Based on their advertising i thought the online thing was just a more detailed walk-through of all the concepts, not the actual answer summaries that are provided in every single other schweser test i’ve had so far.
do you get to keep the exam or is it more lijke the cfai sample exams
AM 71% PM 65% (got crushed in Ethics) Pretty sure there was an error in the morning exam. Q 7B ii) You can go to schwesermock.com to get the detailed answers for afternoon exam.
there is NO WAY you can complete question 1A in 9 minutes - that was ridiculous it was a reality check for me - time to buckle down. i did poorly on the last year for Lvl 2 and thought it was much harder than the actual exam, so i am trying to stay positive i thought they over did it with SS#4 questions, seemed like 50% of the exam was from that SS in the PM I thought the ethics portions were poorly worded still think it was worth the $50
68/73 AM/PM for me… Yea I got owned on the ethics 
The morning was decent and compared to the BSAS this was a MUCH better test
Two things which will probably make the diff between a pass and fail. READ THE #%$!&^# QUESTION **CAREFULLY** Don’t make any silly calculation errors. The above two alone cost me about 4-5 answers in the PM today. I actually thought that BSAS had way too many errors. Have emailed them about it.
markCFAIL Wrote: ------------------------------------------------------- > I am kinda annoyed that the afternoon doesn’t have > descriptive answers like the morning. I feel like > i got taken. You want descriptions? $100 more > please. > > Based on their advertising i thought the online > thing was just a more detailed walk-through of all > the concepts, not the actual answer summaries that > are provided in every single other schweser test > i’ve had so far. didnt know that the answer descriptions showed up when you keyed em in, oops! Damn ethics…
Paraguay Wrote: ------------------------------------------------------- > 83% on AM session. Core capital killed me > otherwise it would have been a lot better. > > I am still not 100% with the terminology on that > question and if it is even correct. They gave the > desired real spending amount. So the discount > should have been at the full nominal rate. > Increase at 1.03 for inflation divide by 1.05 or > 1.03/1.05 ~.981 real discount rate. They > multiplied by inflation and still divided by the > real risk free rate of 1.02. I really need to > reread that portion. It is on every Schweser mock > and the way they write it is completely different > to the book. Paraguay, I salute your ability to keep at it inspite of the level you have scored. About your point above-- While it seems like the spending is inflation adjusted, it is NOT, they are actually ratcheting up their life-style. So, it is still real spending amounts NOT inflation adjusted! It looks confusing because lifestyle spending increase is same as inflation%! Will report back with Scores, but was a lot better than the poorly written BSAS!
jbaphna Wrote: ------------------------------------------------------- > Paraguay Wrote: > -------------------------------------------------- > ----- > > 83% on AM session. Core capital killed me > > otherwise it would have been a lot better. > > > > I am still not 100% with the terminology on > that > > question and if it is even correct. They gave > the > > desired real spending amount. So the discount > > should have been at the full nominal rate. > > Increase at 1.03 for inflation divide by 1.05 > or > > 1.03/1.05 ~.981 real discount rate. They > > multiplied by inflation and still divided by > the > > real risk free rate of 1.02. I really need to > > reread that portion. It is on every Schweser > mock > > and the way they write it is completely > different > > to the book. > > > Paraguay, I salute your ability to keep at it > inspite of the level you have scored. > > About your point above-- While it seems like the > spending is inflation adjusted, it is NOT, they > are actually ratcheting up their life-style. So, > it is still real spending amounts NOT inflation > adjusted! It looks confusing because lifestyle > spending increase is same as inflation%! > > Will report back with Scores, but was a lot better > than the poorly written BSAS! Thanks, I am actually glad I flopped this question and everyone explained it so well if it shows up on the real exam I understand all the nuances. Those 95 year old geriatrics are well known for their increased spending.
Re: question 3 B. Answer key says: $3,700,000(1 + R)7(1 − Toi)(1 − Tg) = $3,000,000 $3,700,000(1 + R)7(0.60)(0.75) = $3,000,000 Can someone explain why there is 25% tax over and above the 40%?
jbaphna Wrote: ------------------------------------------------------- > > > Re: question 3 B. Answer key says: > $3,700,000(1 + R)7(1 − Toi)(1 − Tg) = > $3,000,000 > $3,700,000(1 + R)7(0.60)(0.75) = $3,000,000 > > Can someone explain why there is 25% tax over and > above the 40%? Gift Tax.