Are these important?

[JSD - NYC]

Is it important to memorize the Traynor and M-Squared or derivations of CAPM? I kind of breezed by this area of study, telling myself that I know CAPM and interpretation of beta and so forth without forcing myself to re-memorize the single vs. multi asset derviations or the ratios other than Sharpe. How deeply do you think we need to know this stuff?

 

[S2000magician]

You need to know it only if they ask questions about it on June 4.

 

[JSD - NYC]

S2000Magician -
Thank you very much for the help. I hadn’t considered that approach.

 

[S2000magician]

Everything’s fair game.
I’d make sure that I knew them.

 

[JSD - NYC]

Thanks…. In seriousness, I am trying to focus on the aspects that are most likely to to show up and don’t have a great sense of how deep they generally look to go.
I am using the official texts for studying and there is admittedly a lot filler in there that seems to go beyond a reasonably testable cirriculum, so was trying to get a sense of if those apsects of portfolio construction are fair game. Sounds like you say they are.
So, I guess I have a couple more index cards to fill out.
Thanks again.

 

[S2000magician]

My pleasure.
Even the tiny stuff can be worth a point on the exam.