After making some stupid mistakes on the Mock I promised i would thoroughly read the Pm questions. Now I realize i still made the stupid mistakes “least likely”…damn.

I bet no one can top this one: I cocked up the Taylor rule question! I flipped the targets and the forecasts! I couldn’t remember which way they were ordered in the formula so of course I chose the wrong way.

don’t stress over it. i made 3-4 stupid mistakes on EVERY level i have passed.

hezagenius Wrote: ------------------------------------------------------- > I bet no one can top this one: > > I cocked up the Taylor rule question! I flipped > the targets and the forecasts! I couldn’t > remember which way they were ordered in the > formula so of course I chose the wrong way. funny me too. i kept memorized it using expected - whatever not bothering to know the second half and then expected wasn’t mentioned. i got like 4.3% i think?

hezagenius Wrote: ------------------------------------------------------- > I bet no one can top this one: > > I cocked up the Taylor rule question! I flipped > the targets and the forecasts! I couldn’t > remember which way they were ordered in the > formula so of course I chose the wrong way. I did the same and I fvucked up the least likely question as well. Beat that now !!!

I think 4.35 is correct. I checked the formula and it is trends minus targets. I did targets minus trends. I thought that it was such a trivial formula and I thought I knew it so I didn’t bother to go back over it in my review. Oops.

taylor was like Rn + positive + negative…

4.35 was the right answer…

yeah thats actually an intutive formula, why would you need to memorize. The rate goes up in strong economy/inflationary…I wish all the formulas were that intuitive lol

On the morning on the corner portfolio question I used 9% as the original required return. I caught it, but had to do all my calcs again. Just the kind of mistake that will help me alot on that friggin morning session.

Big Babbu, I’m sure you did well. We all f’ed up alot of stuff…its not an easy exam, but I think we’ll be ok

what was the whole bit about leverage? ? go with combo of the highest sharp and rf rate but what was the allocation???

I did not do well on the morning. Missed question 11 entirely other than to write down quick one liners to buy or sell. The pension IPS schooled me bad. I think I did OK on the individual. I missed one other question entirely as well. Can’t remember which one. The VWAP - Implementation question f’d me up good too. The morning was a pretty good reality check for me.

jmychasi Wrote: ------------------------------------------------------- > what was the whole bit about leverage? ? > > go with combo of the highest sharp and rf rate but > what was the allocation??? 106% ish???

VROD, I think it was closer to 107%, but really close.

106.5% 53.8 weight on sharpe something

hahaha that’s exactly what i had 106.5%!!! yippee

Yeah…I had 107% too…probably depends how you calculated the required return (additive or multiplied) that accounts for the small difference. Either will be marked correct.

Man, I felt stupid this morning when I realized that I forgot to add in the down payment for the liquidity requirement in the AM. Kick kick kick!!! AAAARGH! I can’t even use the “my brain was wacked out and tired” Ego Defense mechanism. It was on the first frakkin’ page!

Big Babbu Wrote: ------------------------------------------------------- > Yeah…I had 107% too…probably depends how you > calculated the required return (additive or > multiplied) that accounts for the small > difference. Either will be marked correct. BB, interesting comment, I did the whole calc using (1+return)x(1+expenses) - 1, then figured I wasn’t doing it right, and redid it using return+expenses. Ended up with 9.4% return and 103%. You used multiplicative approach to get 107% or did I just f-up this one too?