What is the one topic you hope is not on the exam?

hope no overlap\ambiguity when deaing with emoth\cogn biases!
no stupid effective loan % with options involved
no nothing
 
sunman9 wrote:
does anyone have any tips to try to memorize all those tax formulas?
Beside the obvious intutive ones and acrual annual after tax rate, my mind blanks on them?
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Do the short bluebox examples in curriculum once.
For gifts and bequests, write them all on a page, and you will realize they are 90% same. Just a minor intuitive differences based on who pays gift tax.
 
beertard wrote:
Factor Covariance matrix stuff. SS7 R15
Mij=bi1bj1Var(F1)+bi2bj2Var(F2)+(bi1bj2+bi2bj1)Cov(F1,F2)
Mii=b2i1Var(F1)+b2i2Var(F2)+2bi1bi2Cov(F1,F2)+Var(εi)
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yep idem
 
Wait, why am I not worried about ANY of these? Thanks for the confidence boost guys. If I REALLY had to choose right now, it would be those delta hedging with benchmark price questions.
 
Zeeshan Shafi wrote:
Wait, why am I not worried about ANY of these? Thanks for the confidence boost guys. If I REALLY had to choose right now, it would be those delta hedging with benchmark price questions.
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I literally have no idea what that is.
 
MrSmart wrote:
Zeeshan Shafi wrote:
Wait, why am I not worried about ANY of these? Thanks for the confidence boost guys. If I REALLY had to choose right now, it would be those delta hedging with benchmark price questions.
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I literally have no idea what that is.
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4.1 in reading 27.
Basically you take loan when you buy shares to hedge, after some time if delta changes and you have to sell shares then you payoff the loan and invest excess in bonds. Its simple enough concept I guess but when it comes to calculation, mind goes blank. Bombed 1 schweser and 1 CFAI question on this calculation.
 
Zeeshan Shafi wrote:
Wait, why am I not worried about ANY of these? Thanks for the confidence boost guys. If I REALLY had to choose right now, it would be those delta hedging with benchmark price questions.
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What the **** is that?
 
Portfolio Manager wrote:
Zeeshan Shafi wrote:
Wait, why am I not worried about ANY of these? Thanks for the confidence boost guys. If I REALLY had to choose right now, it would be those delta hedging with benchmark price questions.
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What the **** is that?
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It’s about delta hedging a stock position and in doing so earn the risk free rate - but of course due to things not working out exacty, as time moves and stock prices move, you don’t earn exactly the risk free rate, which is the benckmark - so you have to calculate the difference from your realised profit and the risk free rate benchmark.
There was a question asking this on one of the CFAI AMs - can’t remember exactly which one.
 
S666 wrote:
It’s about delta hedging a stock position and in doing so earn the risk free rate - but of course due to things not working out exacty, as time moves and stock prices move, you don’t earn exactly the risk free rate, which is the benckmark - so you have to calculate the difference from your realised profit and the risk free rate benchmark.
There was a question asking this on one of the CFAI AMs - can’t remember exactly which one.
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Isn’t this basis risk? I would think if they ask anything about this it would be a conceptual question.
 
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