Var(Rp) for > 2 assets.

WorldSeriesX · Aug 17, 2006

Var(Rp) for > 2 assets.

Does anyone know if this was tested on the exams in previous years. If so, is it necessary to compute it?

johnnykarate · Aug 17, 2006

nothing on this in june if i remember.....never hurts to know.
its not that difficult compared to other topics.

my 2 cents

WorldSeriesX · Aug 17, 2006

Thx,

not as much difficult as it is time consuming.

JoeyDVivre · Aug 17, 2006

No chance. Too much addition.

CFAHouston · Aug 17, 2006

none. Might have to interpret it though.

CFAAtlanta · Aug 17, 2006

There might be some questions with more than 2 assets but a trick to really simplify the math. I recall doing something like that in Schweser.

bigwilly · Aug 17, 2006

As long as you have the inputs it only takes 10-20 seconds longer for a 3 asset variance vs 2 assets. Its only another w^2*Var and 2*w1*w3*Cov1,3

JoeyDVivre · Aug 17, 2006

I would have to take off a few points for forgetting the 2*w2*w3*Cov2,3. Oops.

bigwilly · Aug 18, 2006

oh yeah, my bad. They are still very easy to do on your HP