Ibbotson-Chen Earnings Model?

It’s in return concept section in Equity. It’s called supply side or macroeconomic model in Schweser.
 
Yes there is. But you are not required to know the formula I believe.
e.g. Which of the following are most likely to be used in determining the Ibbotson-Chen earnings model?
A) 10 years yield on TIPS and yield on 10 years corporate bonds;
B) 20 years yield on TIPS and yield on 20 years Treasury Bonds;
C) 10 years yield on TIPS and yield on 10 years Treasury Bills;
 
Fuck, I haven’t seen much of it covered in my SG. Is it C?
 
It’s B. The inflation factor is determined by (20 years Treasury Bonds - 20 years TIPS).
 
wow ……..i was trying to figure out btw b n c……..man that so seems like the type of stuff they like to test
 
eltia Wrote:
——————————————————-
> It’s B. The inflation factor is determined by (20
> years Treasury Bonds - 20 years TIPS).
Thanks, I’m gonna refer to the CFAI text for this.
 
Yea, it’s this type of question that makes you want to break every single rules in the Ethic section. It’s perfectly legal and valid, but it’s simple enough that many people would have overlooked and resort to guessing (wrong). CFAI loves this type of question. <_<
 
this is tough, if a question like this come, we all will be forced to guess.
heck , no one remember ibbostons chen model. i studied it too but its no good.
 
M*f*ers. I feel like cursing F out of these mofos ibbotson chen.
 
you can get rid of C, cause there is no such thing as a 10 year t-bill. Then its a 50/50 guess…
 
there is a formula, I just looked it it. There are questions on it in the EOC
FML
 
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