@neil
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Up22
This just in – CFA Institute has cancelled May 2021 CFA exams in these cities:
- Mumbai
- Navi Mumbai
- Bhopal
- Pune
- Indore
- New Delhi
- Bangalore
- Chennai
Candidates affected will be contacted via email “in the next few days” to arrange rescheduling to the November 2021 exam window. There won’t be a choice in exam windows as I understand it as “space is limited”.
Refunds? I’m assuming just as before, if your exams have been twice-impacted, you’ll be given an option to cancel for a full refund.
What about other cities? CFA Institute have not ruled out more cancellations. In fact they’ve stated that they are “actively monitoring all exam centers” and it’s “possible that additional cities will be impacted”.
This page will be updated as we learn more. If you have more news, just reply to this thread!
Edit: added new cities.
Up6We’re still waiting to hear back – here’s CFA Institute’s official response on this. Best to keep checking.
Not sure what ‘lift scholarship facility’ means.
Up3To calculate this, sum up the present value (PV) of three components:
- $0.30 payment 2 years from now
- $0.30 payment 3 years from now
- $1 annual payment to perpetuity 4 years from now
Present value of a payment to perpetuity is
PV = C / R
Where:
PV = Present value
C = Amount of continuous cash payment ($1 in your example)
r = Interest rate or yield (14% in your example)Calculations:
- $0.30 payment 2 years from now = $0.30 / 1.142 = $0.23
- $0.30 payment 3 years from now = $0.30 / 1.143 = $0.20
- $1 annual payment to perpetuity 4 years from now = ( $1 / 0.14 ) / 1.144 = $4.82
Adding them all up get you the total PV
= $0.23 + $0.20 + $4.82
= $5.25
Up2Yeah their lines are rammed from the May 2021 postponements. info@cfainsitute.org is the general email that gets sorted to the relevant people, so I would always try that.
The UK toll free number for CFA Institute is 0-800-1247-8132 (24 hours).
What’s the issue you need help with? If it’s info-based we might be able to help.
Up2Right now I don’t think many people are getting through. info@cfainstitute.org might work depending on what your issue is.
Up1The difference between market risk premium vs equity risk premium is a matter of scope:
- Market risk premium represents the additional expected return of the index, market or investment portfolio as a whole, above risk free rate.
- Equity risk premium represents the additional expected return of equity, or single stock, above risk free rate.
Capital Asset Pricing Model (CAPM) is a model for pricing an individual security or portfolio, with the formula:
E(Ri) = Rf + βi (E(Rm) – Rf)
where E(Ri) is the expected return on capital asset and E(Rm) is the market risk premium.
It would depend on the question, but typically CAPM does not use the equity risk premium of a particular stock in place of market risk premium. The beta (βi) is the one that conveys the sensitivity of the expected excess return of the valued asset in relation to the expected excess return of the market.
If you’ve seen a CAPM example that uses ‘equity risk premium’ instead of ‘market risk premium’, maybe they were using this interchangeably to mean ‘equity’ as in ‘equity market as a whole’, since the ‘market’ in market risk is usually an equity market. Or else I’d be interested to see their explanation.
Does that answer your question?
Up1So using a market risk premium is only really theoretical measure of systematic risk, and you use required return ERP when valuing a particular stock?
Also slightly confused by the above statement. The CAPM model is a method of determining required return on equity E(Ri) using market risk premium E(Rm)Â and beta of the asset.
Up1CFA Institue postponed the June 2020 exams to December 2020, and even then some locations (cities) had their Decebr 2020 exams cancelled. Affected candidates were given a choice of refunds or a free postponement to a future exam window.
But this is not exactly translatable to what’s happening now because these were paper-based exams with big test centres.
If it was still paper-based exams I would say most Indian cities are definitely not going ahead but these are small CBT test centres now.
Up1Got a bit carried away compressing my steps and had a typo – it should be 1.143, not 1.144.
After the second payment, 3 years from now, the ‘present’ value of the $1 perpetuity payments is 1/0.14. So calculating the present value to year 0 would be:
( 1 / 0.14 ) / 1.143
= 4.82
Sorry! 😜
Up1This should get you started:Â What Is The CFA Exam? A Useful Beginner’s Guide
We don’t have any India-specific career advice though.
Up1There’s Investment Foundations which you can sign up for, that’s like 20% of CFA Level 1. It’s free to sign up and take the exam, and might give you a good idea of whether this is something you would like to take up.
Another useful datapoint is that if you look at the candidate numbers, only 8% of people that register for CFA Level 1 end up passing CFA Level 3. Sounds terrifying but best that you know stuff like this up front.
Guides on Investment Foundations:
- CFA Investment Foundations Program: A Quick Guide
- CFA Investment Foundations vs CFA Program: A Clear Comparison
Good luck!
Up1Yes, they won’t be strict to exact dates.
Up1This is everyone’s situation at the moment. CFA Institute have yet to get back to everyone and make the changes take effect on websites etc.
Up1- Acceptance factors for CFA Access scholarship is available from the website:
While financial need will be strongly considered, awards may be based on a combination of factors, including financial need; the academic, professional, or other accomplishments of the candidate; obstacles overcome by the candidate; contributions to the local community; the candidate’s interest in pursuing the CFA charter; and other personal characteristics that indicate the individual is a strong candidate to receive an Access Scholarship and become a CFA charterholder.
- No data on this. @zee would it be a good idea to do some research on this? Time permitting of course…
- You can tweak your email preferences here: https://preferences.cfainstitute.org/communication/preferences. Other than that subscribe to 300Hours and they usually include reminders about stuff like this in their weekly email.
- 12 weeks to scholarship results is currently the case for all rolling-basis scholarships.
Up1Your Prometric eligibility number is your CFA Institute candidate ID. This should be in your registration confirmation email from CFA Institute.
The numbers are transferred manually to Prometric from CFA Institute so they take 3 days to show up on Prometric, but given that you’ve been trying this for a month that’s clearly not your issue.
I can think of three ways to try and resolve:
- If your candidate ID isn’t working as an eligibility number online, maybe call Prometric and see if they can schedule you in manually?
- Email CFA Institute documenting everything that has happened. Even if they don’t respond, at least you have a record of everything that happened, because under the terms if you don’t get your exam scheduled you forfeit your registration fee. Hopefully CFA Institute will sort you out when things are less busy.
- If all else fails you can also use all this evidence to chargeback your fee if CFA Institute refuse to refund the registration fee.
Hope it helps. Let us know how it turns out, so that we know how to help the next candidate!
Up0No problem. If you have any further questions just create a new topic!
Up0There are no differences to CAIA exam results speed whether it’s online proctored or not. They both go through the same grading process.
Up0I was able to log in fine. What issues are you having?
