Who knew about Coase Theorem & Molodovsky Effect before the 2013 Mock exam

CFA Level II
#1

I didnt and got both of them wrong

Towards the end of writing that test i started getting the feeling that maybe i have skipped too much of the curriculum to encounter such absolutely new concepts 5 days before the exam

Just looked up in the curriculum notes and both of these have just 1 (one) reference each in the text (apart from glossary & index listings)

Re-takers have warned us already about encountering such stuff on the actual exam too … and i have taken note of that

Problem is … I dont know a way to get around this issue … 5 days before the test

What are you guys doing about this ??

#2

Praying mate. I had the same problem.

#3

coase or curse theorem angry

#4

hey google whats ur overlall score in mock ?

#5

Molodvsky effect is mentioned in passing in the text.

I wrote a paper on Ronald Coase in college (econ major) and was thrilled to finally put that knowledge to work!

#6

Molodvsky is in the CFAI text

#7

Infact both of them are there in the CFA text … albeit referenced just once … as i already mentioned in my original post

The more frustrating part is that I know what the Molodovsky effect is from my experience of tracking cyclical stocks … and i would have got it right … if u didnt call it by that name … and just tell me the essence of that effect in plain language … just to get it wrong as i couldnt put a name to the effect is very disappointing

#8

I managed 70% overall … AM 45/60 & PM 39/60 … but the quality of the result was very poor … as i guessed far too many questions … and surprisingly the hit-rate of the guesses was very good … i would normalize my score by 5 points in each session to account for that

#9

If the question asks “most likely correct”, my focus is always on the remaining 2 options, if I find the correct answer on those 2 options, I just bubble and move to next question.

#10

70 is awesome

#11

what is the coase theorem again ? already fogot :):slight_smile:

#12

It is carbon credits trading in theory … basically industrial sinners can trade their sins for a price

#13

This is why I say this test for me will come down to the luck of the draw ol

#14

I plan on dealing with this issue by re-reading all the material on Wed/Thursday… problem solved.

#15

Re-reading the entire curriculum?

#16

DID I STUTTER?

#17

hahaha

#18

I didn’t remember Coase but got it right, vaguely remembered Molodovsky but got that one wrong, go figure.

I got Coase right because the other 2 answers did not describe the situation, so process of elimination.

Molodovsky was really borderline, I considered picking that but changed my mind and guessed one of the other ones, that was an area I need to review.

#19

Haha, good post. As did I get them both wrong. funny enough, when review my notes after the mock, I did write down the Modolvsky effect, the coase theory, I have still yet to see in my notes.

#20

Remembered Coase because I did an economics degree, remembers Modolvsky because I have been watching the Americans…