In the introduction to the schweser video series, a prof advises that (in his opinion) many candidates do not pay enough attention to FRA (L2) and its a probable reason for failure. His advice - if you do a study session (on any topic) in a week you should do practice questions for that SS within the week and you should always do FRA practice questions every week until test day. Thats straight from the schweser chap - I haven’t looked at FRA yet. May be I should start with FRA already. I have started Derivatives - it seems quite complex despite my ten year work ex in finance. I have used derivatives at work but never looked at it from a valuation perspective like this.
Portfolio Management - TB Model
damn, how has everyone already studied that far in? I just finished economics lol
jackofalltrades Wrote: ------------------------------------------------------- > Portfolio Management - TB Model CFAI states candidates are not responsible for deriving or memorizing the formulas introduced in Section 4-6 Reading 67 - Which is the Treynor-Black section
But getting to understand the Treynor-Black model and learning how to calculate it is implied in the LOS for 2010. Does anybody here plan to memorize it especially since the EOC asks you to do so?
Looking at these LOS’ I don’t think calculating the model is something to worry about. They specifically state in the CFAI text not to worry about formulas from the sections the model is in and looking through the answers that Schweser has to these LOS’ on QBank doesn’t show any formulas. b. discuss the steps and the approach of the Treynor–Black model for security selection; c. describe how an analyst’s accuracy in forecasting alphas can be measured and how estimates of forecasting can be incorporated into the Treynor–Black approach.
This is how I concluded the CFA’s expectations on TB. http://www.analystforum.com/phorums/read.php?12,1087833,1087833#msg-1087833
“Discuss the steps and the approach…” implies that you have to memorize the steps and the manner it is calculated. I’m just saying.
Jack of all…Read link above, TB EOC questions were in the following reading, where no formula or calculation was required, just an understanding of the components and effects.
varundarji, You gonna take Level 2 this June?
Yaa…I am going for this June…How abt you?
I saw you in level 1 forum.Thats why i asked. No, i will be taking next year. All the best!
Noted that we are not expected to calculate the TB model. It would have been very interesting though. I get inspired with all those weighted alphas and long/short positions.
Hands down portfolio management for me.
Derivatives or FRA, haven’t decided yet!
ngeorgiev Wrote: ------------------------------------------------------- > I am just starting my preparation with Book1 and 6 > as I think they are the toughest. My plan is to go > over two books per month and leave May for > revision as I am starting my preparation way too > late. I have no idea how I am going to manage it > though 
ngeorgiev, i’m on the same boat. Just got my Schweser in the mail today.
I start Derivatives tomorrow, but so far I think it’s FRA and Time Series from Quant. I’m a little scared at the pure volume of info on FRA, Corp Fin and Equity. The stuff by itself is not too bad but the way the CFAI devises questions I can see how some serious curve balls could come out. You have to derive so many of the inputs and there are so many models I see a high probability of using the incorrect model or one wrong input to destroy the whole thing. The item set just compounds the issue one simple mistake could blow 6 questions with only 120 questions would probably kill you. One key that I have to say to myself over and over again “FTFQ” Read The F*&%ing Question.
CFABLACKBELT Wrote: ------------------------------------------------------- > Opening the books. +100 Totally agreed. I don’t think it’s very difficult, tricky yes, but certainly not difficult, especially if the material is read consecutively . The biggest problem for me is to find motivation at the moment to
CFABLACKBELT Wrote: ------------------------------------------------------- > Opening the books. +100 Totally agreed. I don’t think it’s very difficult, tricky yes, but certainly not difficult, especially if the material is read consecutively . The biggest problem for me is to find motivation at the moment to open the books