Study Session 6

Where is this on your priority list? I’m taking a look at the CFA text…and it seems like there is a ridiculous amount of information in here for this study session…but I would imagine SS6 will either be 1 item set or 1 essay question with only a few parts. It doesnt seem like you’re getting alot of bang for your buck with this…thoughts?

What’s in SS6 again… Don’t have my books here.

Economics/Capital Market Expectations

cfacfacfa Wrote: ------------------------------------------------------- > Where is this on your priority list? > > I’m taking a look at the CFA text…and it seems > like there is a ridiculous amount of information > in here for this study session…but I would > imagine SS6 will either be 1 item set or 1 essay > question with only a few parts. > > It doesnt seem like you’re getting alot of bang > for your buck with this…thoughts? Agreed. I am just going to memorize some formulas from this SS (Taylor rule, LT Growth, etc). I see this maybe cropping up in the morning for about 10 points. I highly doubt they would do a full item set on it.

I can almost guarantee you that Economics will make it’s way onto at least part of an itemset. Capital Market Expectations and Economics should provide for some easy marks and the material is not very difficult at all. I would know this stuff so you can capitalize on the questions to make up for questions you may screw up in other more difficult areas.

oookkaayyyyy… could someone please explain why in the chart in SS6 (its either pg 63 or 69) it says that if inflation is at or above expectations…theres a positive affect on holding cash?

i’m assuming because interest rates will rise and you can reinvest at higher rates.