Portfolio Management 2016

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tau281290

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Can anybody clarify definitively whether or not these portfolio management related formulas be in the 2016 Level 2 exam:
1. Value added = Alpha - (risk aversion x residual risk^2)
2. Optimal residual risk =IR / 2*risk aversion
3. Highest value added = optimal residual risk x (IR/2)
Thank you!
 
And who in this forum, do you think, is qualified to provide such a definitive answer?
 
I say if it’s in the curriculum it can occur in the exam. I admit I haven’t mastered that last topic yet, but
dymke09
has done a good job in compressing the whole curriculum into notes and by the looks of it your above request is missing from that notes.

https://drive.google.com/folderview?id=0B-647KMGTlxcYmdBZGZzOWliR0E&usp=...
Again, it’s just an educated guess, not a definitive answer. Also given that in the Topic Tests PM is only 4/83=5% item sets, it is expected the exam will have just 6 questions. What will it test? Probably broader topics.
 
Thanks, I’ve read. Then again, this topic is just so vague.
 
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