itsalwayslupus

itsalwayslupus

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      7

      I’m assuming you’re referring to this passage:

      Procedures concerning the restriction or review of a firm’s proprietary trading while the firm possesses material nonpublic information will necessarily depend on the types of proprietary trading in which the firm may engage. A prohibition on all types of proprietary activity when a firm comes into possession of material nonpublic information is not appropriate. For example, when a firm acts as a market maker, a prohibition on proprietary trading may be counterproductive to the goals of maintaining the confidentiality of information and market liquidity. This concern is particularly important in the relationships between small, regional broker/dealers and small issuers. In many situations, a firm will take a small issuer public with the understanding that the firm will continue to be a market maker in the stock. In such instances, a withdrawal by the firm from market-making acts would be a clear tip to outsiders. Firms that continue market-making activity while in the possession of material nonpublic information should, however, instruct their market makers to remain passive with respect to the market—that is, to take only the contra side of unsolicited customer trades.

      This basically means that if you’re a firm that’s a market-maker to an issuer, and if you now possess material nonpublic information, prohibiting all prop activity itself might be bad for the market, because you’re reducing liquidity and sending (possibly inaccurate) signals just by stopping trading activity.

      Say BigBucksBank acts as a market-maker to SmallFry tech company, and this week BigBucksBank receives some material nonpublic information about SmallFry – maybe a substantial credit application. If BigBucksBank has a policy of immediately stopping trade in SmallFry stock, two problems arise:

      Since BBB is a market-maker in SF stock, SF stock will have a liquidity problemIf the market sees BBB stopping trade in SF stock when they’re previously market makers, then they may panic as they may think that SF is in trouble (rightly or wrongly)

      wealthcreator voted up
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      I know reps with CFAs so yeah, I think it should count.

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      Just came back to this thread. What a shitshow the last few days have been with the coronavirus.

      Just wanted to say might be better to reschedule it to online.

      Stay safe.

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      Whether or not you get material beforehand depends on the instructor I think. I went 2 years ago in NYC and didn’t get anything before the class. Where are you taking yours?

      If they’ve given you slides or material I would look through it and prepare questions, but not in a hardcore way, just as much as time allows.

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      4

      I don’t think you can get a deferral for illness unless you needed surgery or some life-threatening stuff. Things like death of a family member (and presumably your own) are also possible.

      I think it’s considered on a case-by-case basis though.

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      I know @itsalwayslupus is probably right … but I want to believe it’s true.

      If only it were!

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      No, they’re not the same. They all draw from the same source, which is the CFA Ethical and Professional Standards, but the focus, depth and areas tested vary from level to level. It’s not surprising that some questions feel the same though, it felt the same way to me too!

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      3

      Yeah…I’m not convinced. Mark Meldrum is the man, but I don’t think this video is useful. There are a few holes in the calculations and assumptions even if you buy into the theory.

      1. The whole headline is ‘pass CFA L1 with only 53% of the material’, right? But it goes on to assume you will additionally know how to eliminate one question option out of 30 other questions, so you must know more than 53% if the material for that to happen.
      2. Assumes you make no mistakes for the 53% of known material, which means no misread questions (happens to me all the time), no calculation problems, no obscure questions catching you out, no other stupid mistakes. At all. This is a huge assumption.
      3. He goes on to say something like ‘if you have to pass L1 with this strategy, L2 is going to kill you anyway’. I agree.

      I know he caveats it by saying it’s not a plan A, but newbies watching this might be tempted to think ‘hey, I’ve read 53% of the syllabus, everything is now a bonus’, but in fact I think it would be very dangerous to have this attitude especially in L1.

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      artyeasel said:
      The topics that are tested in essays are also more predictable, I think 300hours has done an analysis on this.

      Relevant link: https://www.300hours.com/articles/analysing-past-cfa-exam-data-reveals-which-topic-areas-to-focus-on#.XZMEmJNKjOQ

      Planning for a soft start in December, full-on in January. Bring it on.

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      Did it over the weekend. Did not do well for my confidence but good to know that it’s a tough one to begin with. I’d recommend it.

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      I bought it but haven’t gotten to it yet, will do it this weekend.

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      @Matt_AnalystPrep My issue with A being the right answer is that the adverse news was discovered BEFORE TCorp was put on the restricted list. 

      My understanding is that you are allowed to keep quiet about news AFTER being on the restricted list. If it’s before, you have a duty of loyalty to their clients.

      So B should be the most accurate answer.

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      Given a market return of 10% and a risk-free rate of 4%, the portfolio with the best performance according to Jensen’s Alpha is most likely:

      FTFY

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      seems like it will take longer than 1.5 minutes to properly execute.

      I accepted that some FRA questions will take longer. I learned to recognize these types of questions and deal with them last in the actual CFA L1 exam, sometimes just choosing one at random. If you are going to spend 5 minutes thinking/calculating with a 50/50 chance of getting it right, sometimes just picking one with a 33.3% chance is the better decision.

      Is the best way to study for these to just memorize the formulas and just crank out as many practice problems as possible to recognize the types of questions and how to solve them?

      Yes, and also going through all the written examples you can find.

      Also:

      • Master the differences and relationships between income statement, balance sheet and cash flow statement
      • Build a table of GAAP vs IFRS (or download one) and memorize
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      You can’t create custom functions or store formulae (that I know of anyway).

      You’re not supposed to store any numerical values and you have to clear your memory before the exam starts. What kind of values are you saving?

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      @excelmonkey It’s supply and demand, right? How much benefit does an additional CAIA give you over just the CFA in your current firm, or any future career path you want to chase later?

      I can confirm that CAIA is less of a PITA than CFA to pass but not insignificant either.

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      In the BA 2 plus, is there a better way to use the memory function rather than STO 1/2/3 etc and RCL 1/2/3 when trying to bring the answer from one calculation to start another calculation?

      Not that I know of, but I’m not sure why is that difficult to do. It’s not the same as typical calculators, but practice often and you’ll become fast at it.

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      That’s a very short window to notify CFA Institute – if you were to be on holiday and not looking at email you’re screwed.

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      3

      Any corporation will employ CFAs if they’re large enough to need a finance team. Am currently in the AM team for a non-finance tech company, so it depends more on the role than the company.

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