Kesselaar Topic Test

[turbo989]

I am sure you are all aware of this brutal topic set. Why do they use the risk free rate to get the discount factors? Most problems give you a LIBOR term structure. This one didn’t (just spot LIBOR), and I was just completely confused on what rate to use.

 

[jounin83]

i decided to skip ‘only’ this item set. what do you think ?

 

[krokodilizm]

What a good idea

 

[Flashback]

Jounin, can you solve Ericsson with at least 83%?

 

[jounin83]

@flashback : no, i can’t

 

[Flashback]

^neither I can. 50 % maximum regardless the level of study and prior knowledge. I hope such sadistic vignettes wouldn’t appear on real exam.

 

[tau281290]

Funny thing is that for one FRA test I could only do 2 of them, and the other 4 i just chose A, and I ended up getting 6/6.

 

[Flashback]

Empirical researches showed that chimps throwing picado darts chosen better investment decisions than 70% of financial analysts. I guess this should be also the same.

 

[tau281290]

If that were the case, why are people still studying for the CFA exams?

 

[Flashback]

Because they hope they can outperform the chimps.