Dividend payout has nothing to do with dividend growth rate. The payout can remain constant but dividends grow because earnings grow.
wake2000 Wrote: ------------------------------------------------------- > I think he got them from that #%@#!%# Schweser > Q-bank but dont quote me on it. Please read this before you reply. lol. ---- I searched Risk Budgeting, and found this thread…I copied some of the questions and pasted here. Source: http://www.analystforum.com/phorums/read.php?13,1138264,1138300#msg-1138300
I really don’t care what the books say, my explanation is correct. Earnings grow, dividends depend on the firms policy.
Hi, guys. I searched for “divident growth” in the whole curriculum. I got 15 results in Vol 3. No place describes which factors affect the dividend growth rate. We just need to use the dividend growth rates in formulas, such as H-model. So I agree, it’s not for L3. --Again, my bad.
Having problems with a few of these: Q1: I put C (The benchmark may not match the portfolio.) But you said the correct answer is B) The returns are not risk adjusted. Don’t really know what that means. Q5: I put C, why is A (Liquidity at any cost) better than C (Costs-are-not-important)? It seems like they’re almost the same. I’m not too sure about what the differences are between the two. Q8: I put B, you said answer is C. B) Determination of the amount of risk the portfolio can take. C) Identification of sources of portfolio risk. In Stalla, they describe Risk Budgeting as “a comprehensive system that focuses on where risks should be taken and how to allocate risk efficiently across and investment portfolio or individual business units of a firm…” I think of this as where there are more potential for higher return, then allocate more risk to that area or investment. Q9: I put B, you said answer is A. A) Technological progress can have a large impact on economic growth but the growth in capital stock is less important for economic growth. B) Both technological progress and the growth in capital stock can have a large impact on economic growth. I have to say I disagree. I think that capital stock is very important for growth in BRICs countries. More capital stock increases the capital/worker ratio which increases worker productivity (since worker can do more with more capital) and therefore economic growth.
mik82 Wrote: ------------------------------------------------------- > I struggle to find a correct answer for Q8. Risk > Budgeting allocates capital based on the risk a > portfolio can take, it doesn’t identify the > sources of portfolio risk. > > Q1 is missing some background. Was that the whole > question? > > Some questions are not relevant to level 3 (Q6 and > Q7) mik82, Q8, “Identification of sources of portfolio risk” is from Schweser B5, Page 155. Actually, the whole “mess” came from this question. I didn’t choose C this morning. But among the three answers, it’s the best. I agree with you…On the other hand, before the client decide to allocate active risk to those managers, he needs to identify the sources of portfolio risk. A little far, though. Now I’m sure where the question came from. Anyway, let’s move on.
programmer, Q5: “Costs-are-not-important” trading tactics may be motivated by various reasons, including information. If you use Schweser, please check (B5)P25. But, “Liquidity-at-any-cost” is definately the answer. Look at Curriculum V6, Page 39. (5.3.1). Q8: C) is the best answer. Risk budgeting is about the risk allocation to those managers, not the amount of risk the portfolio can take… Before you allocate the risk among managers, you may need to identify the sources of risk first – this is my thought. Less than one page covers this topic in curriculum. 
Q1: Both B and C make sense to me. B) is about the risk adjusted performance measures. Q9: I’m pretty the answer is from Schweser book. Hi, guys. Please move on, and spend our time on more import review. I will stick with CFAI books and real Morning essay questions/answers.
“Technological progress can have a large impact on economic growth but the growth in capital stock is less important for economic growth.”
Where in the book (original) does it say this? page number? does anybody know?
thank you very much!
1.A
2.B
3C
4C
5A
6A
7C
8B
9B
10A
.