jak5189

jak5189

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      don’t forget that FRA covers both U.S. GAAP and IFRS, which is probably different from what you’re covering in your masters program

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      Since you have an accounting background the FRA portion might be easier to digest. However, you still have Economics, Portfolio Management, Fixed Income, Equity, Corporate Finance, Ethics, Quant, Derivatives, and Alternative Investments to read, digest, and quickly and efficiently answer questions. The material is a lot more in depth than what you learned in undergrad so you will need to spend a lot of time understanding concepts practice answering questions. You’re talking about over 1,000 pages of material to master in two months. I would not recommend pursuing this exam with two months to spare.

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      I know myself…I will not be prepared for Level II this June. I am gonna shoot for June 2016. In the meantime I plan on studying for the GMAT to keep my options open…and to keep my brain functioning 🙂

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      >70% on everything except Derivatives…I bombed that with <=50%. I am surprised I did much better in FI and Quant than I originally felt coming out of the exam.

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      I am part of that 44% 🙂 Gonna go drink a beer or five!!!!

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      Although I will know for sure come Jan regarding my Dec 2014 exam I can say with confidence that Elan Guides prepped me very well. I was thoroughly impressed with the quality of their content and the difficulty of their practice exams. I 100% recommend them.

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      @jmsatchwell, I feel the same as you. I would come across a question that I had to think really hard and either got it (or so I think) or just guessed and moved on; then I would run into like five really easy questions. I am still wrapping my head on some those questions I found difficult. My only source of comfort is that those easy questions = easy points.

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      The concourse where we stacked our coats and bags turned into mayhem during the break and after the exam ended. I had one person yell me to move! Other than that, no real crazy things in my hall. Just a lot of people who looked like they got hit by a train while waiting for the second session to start. I also noticed quite a few people strolling in very late after the afternoon portion had begun and they prob had an hr to finish it off. No way they finished it. 

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      I would recommend Elan Guides, their mock exams are tough as heck and are a lot similar to what I saw on the actual exam. 

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      I thought the exam was a tough nugget yet quite fair. There were three-four questions that seemed to be completely out of left field that just stumped me; for those, I picked B and moved on. I finished with more than enough time on both sections so I never had a time issue. It wasn’t truly a tricky exam to me, if anything it was fairly straight forward but there were questions designed to make you think a little on how to answer, which is never bad :). I have always felt good about FRA and feel just as good walking out of that exam, and same for Ethics. If anything, they might be my saving grace :). I would say the same for Corp. Fin, Equity, and Port. Fin. But quant this time around was pretty tough for while FI was sorta tough but I think I eked it out. Derivatives and AI have always been a shot in the dark for me as I had been focusing on the low-hanging fruit. 

      My speculation is that the minimum passing score will be between 68-70%, inclusive. I don’t see the minimum passing score surpassing 70% or going below 68%. I am crossing my fingers I get at least a 70% 🙂

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      One more thing to add – if the question stem would say something like, “the percentage returns for a stock since inception…” then I believe one should assume the data set is a population. And my logic is the “since inception” part of the sentence; this implies that the data set is inclusive of ALL the years. I have seen this sort of example on a practice exam and my logic worked fine there. 

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      this stumped me as well and i decided to go with the assumption that this is a population data set. “the percentage returns for a stock for a 5 year period…” is very similar language to a CFAI mock exam question that I encountered, and the correct answer was based on the logic that it is a sample data set. My view here is that this data set would be considered a sample set due to the language I previously noted. 

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      Yea, I didn’t see this in the Fixed Income section. I am trying to search for it in Econ as I think it might be there. 

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      For a Putable bond, the yield will be smaller as investors will value it more; so when you take away the put the OAS will have to be larger than the z-spread. For a Callable bond, the yield will be larger as investors will not value it more; so when you take away the Call the z-spread will be larger than the OAS. Hopefully that helps conceptualize the reasoning behind the spread differences. 

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      The best way to understand this is that EPS is largely affected by a company’s capital structure, which is more or less the composition of how a company finances its operations, or in other words…its financial risk. Net Income, although affected by many machinations and non-operating events, may not be fully affected by the capital structure of the company. I realize that my view on why Net Income might be a stretch so I would appreciate anyone else adding to my commentary. 

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      Something to keep in mind – DOL = % change EBIT / % change in Sales; DFL = % change in EPS / % change in EBIT; DTL = DFL X DOL. 

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      I have also noticed that KS’s material is not always up to par. I started using Elan Guides for CFA Level 1 questions and I feel that they’re on par with the official questions. I feel like I was shirked with the Qbank. Elan’s questions are a lot more in depth and comprehensive.

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      I’m curious why you didn’t include Portfolio Management in the list of topics to skip. It comprises less than 10% of the exam. 

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      @aylouis13, I used cost of equity as well and I believe that is the correct rate of return. In my opinion, the WACC should be used for FCFF or FCFE. Since we’re talking about dividends, it should be cost of equity as the rate of return.

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      @Simply_complex2, if I am understanding an increase in market interest rates will cause the coupon rate to adjust up to the new market rate to compensate investors for the depreciation in the price of the bond? The compensation is in the form of a higher reinvestment rate? And for the issuer, the decrease in interest rates causes the coupon rate to adjust downward, which allows the issuer to pay out less to the investor. Is that the logic??

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