treynor - black fiasco

CFA Level II
#1

I’ve heard people talk a lot about the treynor - black bombshell last year. I’m not sure I understand what exactly the issue was. Can anyone fill me in… as in… is there something other than what’s covered in the schweser material that I need to be aware of? Thanks

#2

bump. would like to know too.

#3

It seems last year Schweser made nominal mention of the topic and went into no detail, saying it wouldn’t need to be known for the test. Come test day, whaddaya know, a whole vignette on TB.

#4

and oh, seems like they covered it well enough this year. you don’t actually have to know the formula or calculate it, but be aware of what it’s for, its components, the greeks, etc.

#5

ng30 Wrote: ------------------------------------------------------- > and oh, seems like they covered it well enough > this year. you don’t actually have to know the > formula or calculate it, but be aware of what it’s > for, its components, the greeks, etc. I’m definitely no pro on TB…but aren’t the Greeks part of the BSM…not the TB? Maybe I’ve lost it.

#6

alright… cool too bad, I’m working off of the schweser books from last year. Will have to refer to CFAI material for further depth. thanks

#7

I have yet to see a vignette from CFAI that has all 6 questions on the same topic. Is there a bit of bias in terms of people reactions (honestly)??

#8

No one studied it… That was the fiasco.

#9

bhill020 Wrote: ------------------------------------------------------- > ng30 Wrote: > -------------------------------------------------- > ----- > > and oh, seems like they covered it well enough > > this year. you don’t actually have to know the > > formula or calculate it, but be aware of what > it’s > > for, its components, the greeks, etc. > > > I’m definitely no pro on TB…but aren’t the > Greeks part of the BSM…not the TB? Maybe I’ve > lost it. well there is at least one - alpha

#10

ok so this year, what do u all think this years fiasco will be? im thinking hardcore realestate investments from equity since its new 1luv to obama free tibet

#11

the fiasco was that schweser only had half a page without 1 number in it and there ended up being a 6 question vignette with calculations - I heard the CFA text also did not do the section justice given the question. This year, I think everyone will be crying about a couple time series questions and real estate.

#12

I guess I could see CFAI throwing in some serous questions on real estate / MBS considering their impact on the economy in the last year

#13

also considering MBS’s, CDO’s are now gone from most bank balance sheet, they may neglect it optimistic thinking

#14

aladak Wrote: ------------------------------------------------------- > also considering MBS’s, CDO’s are now gone from > most bank balance sheet, they may neglect it > > optimistic thinking they will probably twist those somehow to show why they blew up in everyone’s faces Also be ready for Real estate qualitative questions…

#15

MBS are not off bank balance sheets and aren’t going away. MBS is a cornerstone of the financial system. CDOs of MBS are a different story.

#16

ah yes, the repackaged junk gotcha

#17

I’m betting on a mark to market return vignette with available for sale, consolidation, etc with all those creepy tricks like potential litigation thrown in there to spank everyone

#18

potential litigation consolidate?

#19

man that vignette destroyed me

#20

me too, i hope it is some CFAT and ERAT action or a little PAC baby