How is “Capital Market Expectations” reading tested

@raviVooda I’m not taking any guess. Anything is possible.

@RaviVooda Many, many ways – woven into other areas, or specific questions given tables of data, including applying Taylor Rule, Yardeni, H-model etc. If you just look at the all the practice problems in the books, you can see it can come at you from many angles.

Based on past years, it is virtually certain CME will be tested in the morning session this year.

I would specifically be prepared for:
– Grinold-Kroner
– Singer-Terhaar
– Taylor Rule
– Exchange rate forecasting
– Some sort of qualitative discussion of the business cycle.

Capital Market is a tough beast. My Recommendation would be to read through – Forecasting and Forecasting tools, In statistical tools. I would like – Excess corporate growth , Grinold and Kroner model, Singer and Tehaar ICAPM for quantitative questions. You should also pay very close attention to business cycle analysis, Inflation and recession topics. Trend growth components and economic metric tools are also CFA favourites. I would also like to read co relation of currency inflow and outflow with business cycles. Hope it helps

Thanks @Betankrich‌!

I was just wondering the same thing as parts of the chapter seem very calculation based but the command word is “demonstrate”. Anyone have any thoughts on this?

@RaviVooda It would usually be clubbed along with other PM questions. At level 3, like they repeatedly mention in the notes, its more about linking the concepts together rather than isolating different topics.