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Chuckrox8,
Did you finish ethics review? Any points to pay special attention.

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whew..u scared me there...
they are the same lol

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P/E1 = 1/(r- FlowThrough%*Inflation).

Why the complex formula?

r here is nominal...you can always go back and forth between real and nominal, nominal rate = real rate + inflation.

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jpsi1 Wrote:
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> Chuckrox8,
> Did you finish ethics review? Any points to pay
> special attention.

Ethics is always such a curveball. It goes without saying that soft dollars will be on the exam. I would recommend reading the actual CFAI guide to soft dollars that's on their website. It's much more straight forward than the text. I think we'll see probably six questions relating to the standard and code and then probably 3 or 4 on soft dollars and a couple on prudent investor. Ethics is tough. I can guarantee you that you will be scratching your head on a few of the questions.

Although it's getting late, I would definitely look at some of the differences between old vs. new prudent investor, flip through Ethics EOC, and look at some of the case studies. Ethics can be easy points, but it can also be a deal breaker.

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Dreary Wrote:
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> P/E1 = 1/(r- FlowThrough%*Inflation).
>
> Why the complex formula?
>
> r here is nominal...you can always go back and
> forth between real and nominal, nominal rate =
> real rate + inflation.

The other formula maybe more intuitive since you add to real required return whatever left of inflation due to flow-through.



Edited 1 time(s). Last edit at Friday, June 3, 2011 at 07:00PM by jpsi1.

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Thank you Chuckrox8!

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