After i did all the Schweser practice exam and the CFAI exam, i would say the real one style is completely different. The questions are so tricky and required a lot of time to think for each question In addition, the exam keep asking a lot of minor part from the note (i.e. Current account, Capital account, things like that). The PM one is completely nightmare to me…
I would say that the exam was very similar to the CFAI mock exam, except that the AM and PM mock exams were equally difficult - whereas the real AM was easy and the real PM was very hard. And yes, sadly every LOS can be tested - current/capital account was a specific LOS. I didn’t like that question much either.
Yes, remember the Q about using the Gordon Growth model to find Equity Risk Prem for Kazakhstan? The only thing I know about GGM is P0 = d1/r-g Schweser did not cover what was done in CFAI - Equity Risk Prem = Foward Div Yield + Expected Growth - govt bond rate. Minor minor stuff came up in the exam that was not in schweser.
ptan - that was in Schweser - it was one complete LOS. I just looked in up in the Index of the equity book.
It’s definitely not something that sticks in the mind. GGM is almost always going to come up as a DDM question.
I couldn’t remember using the GGM do derive an equity premium, but just used the d1/r-g formula, plugged in the numbers given for the Kazakhstan market, solved for r, deducted risk free rate, got the market premium.
The Kazhak Vignette…was 17.2 one of the answers for a Q (dont remember which one…I believe for calc of reqd rate of return)