I remember nearly a year ago peaking in on the the L2 forum and seeing many people write about how Treynor black killed them and it was unexpected… for anyone that remembers, how was it tested? The way the LOS is worded and how schweser puts it seems like we are not responsible for the many formulas contained within. Am I wrong in assuming we don’t need to memorize all those formulas for the exam? Thanks in advance
In the CFAI texts, it says that the candidate isn’t responsible for memorizing the formulae in the sections. But, they look pretty straightforward: proportionally weight individual mispriced stocks by the amount of alpha/error (i.e. stocks with higher alpha to error get a higher weight). not sure how this could be tested…maybe something qualitative on the construction methodology? patkeenan Wrote: ------------------------------------------------------- > I remember nearly a year ago peaking in on the the > L2 forum and seeing many people write about how > Treynor black killed them and it was unexpected… > for anyone that remembers, how was it tested? > The way the LOS is worded and how schweser puts it > seems like we are not responsible for the many > formulas contained within. Am I wrong in assuming > we don’t need to memorize all those formulas for > the exam? > > Thanks in advance
Exam 5 or 6, of Schewer’s Book 6 has most of a full vignette on Treynor Black - its very qualitative, no calculations.
i was wondering about the treynor black fiasco too. my sense is that people didn’t know anything about it and schweser did a poor job on it (improved this year though). really, i think we need a thread on areas that schweser doesn’t cover well (IRR vs. NPV vs. other wierd calculations comes to mind). there are definitely some formulae where i’ve looked at it and said no way am i going to memorize them (basically, i think memorizing them would be poor use of brain space and time… and schweser/LOS seems to suggest they aren’t required).
I know someone is out there wanting to clear the air for us