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@sophie Thanks! Scored better in Schweser Mock 2 PM but I think that is because they were my stronger areas. I still haven’t gone through quant (my weakest area) for the second time. Not sure if I should concede it and concentrate on other topics. And still have to memorise formulas. Totally freaking out!

Schweser style of presenting information is very different to CFA. For example they present binomial model information very differently 😮

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@ajfinance thanks! 🙂

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The Smart Card Index (SCI) risk premium, equal to the SCI return minus the risk-free rate, denoted SCIRP is used as the dependent variable in a 2 factor regression in which the independent variables are index returns minus the risk-free rate for the consumer credit industry (CCIRP) and the telecommunication industry (TELIRP). The regression results:

SCIRP: Mean 5.4% VAR 0.2704
CCRIP: Mean 4.6% VAR 0.0784
TELIRP: Mean 2.8% VAR 0.1024

Regression co-efficient: a = 0.011 b (CCIRP) = 1.02 b (TELIRP) = 1.045

Q: Based on the correlation of 0.25 that the team believes to exist between CCIRP and TELIRP, the new volatility is closest to?

A:56.4%

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There must be something else mentioned in the question. This question is not in mock A, B or C. Where are you getting it from?

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It’s in the Elan practice questions.

‘Since the put options is selling for more than its actual worth ($4 vs $3.05) we would sell the put and SELL n units of the underlying stock for each option sold.

It doesn’t make sense to me.

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Thanks Sophie.

So in summary, to achieve delta = 0:

1. Long call, short stock
2. Long put, long stock
3. Short call, long stock
4. Short put, short stock

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@vincentt But what about the incremental CF over the selling price of old equipment? I thought we need to take this into account for replacement project.

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@vicentt you are on a roll! Are you doing one mock per day?

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@sophie when do you suggest the cramming style? 2 weeks out or 1 week out? 😮

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@vincentt I thought the curable part of the $3,750,000 amount will need to be deducted for depreciation. But it does not appear to be required here. Lost.

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@sophie I’m still scoring in the high 50’s after 4 schweser exams. I make stupid mistakes and sometimes don’t understand the questions (the way it is phrased) and then lose half the questions in the vignettes. And it takes me one whole day to do one mock and debrief (check answers, practice similar questions). Is this normal pace?

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@bceagles that would be a violation under VII (A) Conduct as Members and Candidates in the CFA Program

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@Sophie averaging around 65% (doing better in the Elan ones than Schweser). The weak areas are the four smaller weighting sections.

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If putable bond z spread = -40bps and option cost = 25bps and an option free bond with the same credit rating, liquidity and maturity offered in the market at a nominal spread of -15bps and z spread of -10bps.

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@vincentt the reason is I’m scoring low (getting half the questions right) in these areas and it’s affecting my overall scores. If I can get some more points from my weaker areas then I feel a bit safer. But I also want to revise the heavier sections again. May be strapped for time. Thanks @Sophie. Will see how I go today with more revision.

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@shantala @sophie @diya I carry a red bull with me on exam day as well. I drink it just right before the afternoon session. Red bull has a huge tiring effect after the hit but by that time the exam will be over and it’s time to celebrate!

Can tuna is good for exam day. Low on carbs and good source of omega 3. :-bd

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Wow those are really good scores.

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I’ve gone back to revision. Will hit the CFA mock on Monday.

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You guys all in the northern hemisphere. I’m down under 🙂

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I’m like @vincentt (maybe it is superstition?). I still have all my CFAI books from LI and LII plus a set of Schweser notes for LI and Elan notes for LII. I have just received my CFAI books for LIII. It will remain in the office while I enjoy a well earned break in August.

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