Treynor Black Model

I have read this stuff from the CFAI Text book. The schweser thingie doesn’t have enough details. It’s clearly mentioned that we don’t need to know the formula and only the process and the methodology behind it. That said, the exercise at the end of the chapter is only calculation based. Are you guys working out all the problems and stuff? I did the first one and it did help me understand the security analysis method. Candidates who are re-taking L-II- could you please tell me what exactly I should focus on for this reading? Thanks a lot.

i worked out the calculations and they are really helping understand, this stuff took me by storm though, im going to go though this a number times again. and i also wonder why people got killed on this last year if there is no need to calculate, the test must have relied on the ability to understand the calculations, i.e. there was no need to remember the formulas because calculations were given but mc still focused on numerical understanding

its as if the questions were in martian last year. i got carried on on that subject

viktorv, thanks for your input. Indeed, some number crunching did help me re-enforce the confusing steps. cjb- could you please elaborate? can you tell me what type of question was asked from this reading? thanks for your help.

I also missed the T-B Model last year.

OrlandoMike= Could you discuss Treynor Black questions from last year’s exam in a general manner? Thanks for your help

isnt there a great thread from JD on TB? saw it a few months back

I implemented the code to do T-B, so I think I understand how it works. Still haven’t figured out the B-L model though. Is B-L model in L2?