CFAI mock

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wouldratherberiding

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Anyone else struggling with the CFAI mocks? The question wording and cases seem very confusing and the answer explanations are not helpful. Am I wasting my time on these?
 
Keep going. I found the first two questions on the “AM” pretty tough/vague and scored 2 or 3 out of 6 on each. After that, it’s pretty smooth sailing in my opinion. Ended up mid 70’s on AM and just over 80 in PM if I remember correctly.
The answer descriptions however are not as helpful because they’ll only discuss the right answer and not at all about why the other options are incorrect, like Schwesers and previous years AM’s do. Still…practice is practice.
 
Going through the AM of it at the moment. Seems miles ahead of topic tests in terms of clarity and subtlety.
It was mentioned here before that 2016 mock was the most difficult. You still have 2015 mock to fall back on. I wouldn’t say you have much more alternatives besides the EOCs, and maybe Schweser practice exams.
 
Just bumped into a random one, Q49
Behavioural finance improves client retention metrics.
What?
 
MrSmart wrote:
Just bumped into a random one, Q49
Behavioural finance improves client retention metrics.
What?
Click to expand...
I work in PWM and can tell you in practice that this makes total sense.
If you are presenting a proposed model to a client and try explaining why, based on MVO or expected alpha or whatever that they should move into this allocation because it’s the ‘optimal portfolio’ that a rational investor in their shoes should choose, they will give you a blank stare and think to themselves, “what salesman nonsense is this guy feeding me?”
But if you understand their motivations and irrationalities, and carve out their plan with them in mind, adapting to emotional biases, etc., they are far more likely to follow your suggestions and stick with you as a client.
 
Gersonides wrote:
MrSmart wrote:
Just bumped into a random one, Q49
Behavioural finance improves client retention metrics.
What?
Click to expand...
I work in PWM and can tell you in practice that this makes total sense.
If you are presenting a proposed model to a client and try explaining why, based on MVO or expected alpha or whatever that they should move into this allocation because it’s the ‘optimal portfolio’ that a rational investor in their shoes should choose, they will give you a blank stare and think to themselves, “what salesman nonsense is this guy feeding me?”
But if you understand their motivations and irrationalities, and carve out their plan with them in mind, adapting to emotional biases, etc., they are far more likely to follow your suggestions and stick with you as a client.
Click to expand...
Oh, that’s what they mean by ‘client retention’.
The first thing that crossed my mind was the firm’s ability to improve retaining client metrics, as in client information or records of their parameters.
 
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