Stuff that Schweser does not cover management, knowledge, capital, between

domani

Just in case any of these might be on the exam, here's a list of things that (to the best of my knowledge) the Schweser notes do not over. Each of these items is present in the CFAI curriculum. Please dont treat this list as an 'exhaustive' list

Sharing of burden of a tax on factor income - End of Reading 21
Calculating costs of ST borrowing - End of the Reading on Working capital management
Valuing a bond between coupon payment dates, calculating full and dirty prices and accrued interest - Reading 64 (I think)
Details of real and mainstream business cycle theories - Reading 25
Yield measures of floating-rate bonds - Reading 65

Of these, I feel that calculating costs of ST borrowing has the highest chance of being on the exam, LOS 46g. I think it was on the mock exam last year.

ogoluwa

Thanks for posting this!

Maddin

actually, there is no 46g in the CFAI curriculum. If you don't mind posting each LOS you think is missing, that would be helpful. And we might find the Schweser notes weren't missing as much as you thought.

suyash1989

Thanks @beatthecfa!

Couple of more things...

Zero Cost Collar: Pg.95 , CFAI Text, Vol 6
Beta,Gamma,Rho etc.. : Pg 118 , CFAI Text, Vol 6
Characteristic line: (way to measure Sytematic Risk i think): Pg 281, Vol 4


Would be helpful if everyone chips in...



Edited 1 time(s). Last edit at Friday, May 28, 2010 at 07:28AM by smileyface.

jim8z3

Wow they don't have zero cost collar in there!?!?! Thanks for letting me know.

Delta, gamma, rho is definitely level II stuff. Not directly linked to any level II stuff



Edited 1 time(s). Last edit at Friday, May 28, 2010 at 07:30AM by beatthecfa.

cchang

The ST borrowing formulas are nasty. Very hard to remember. Are u referring to LOC, BA, CP? They are in the 11th hour guide though. Thanks

Anyone ever see Zero Beta Portfolio on a previous mock or exam ?
I jotted down few quick notes.

Zero Beta:
higher intercept - E(r)
flatter slope - smaller MKt Risk Prem
some unsystematic risk but 0 systematic risk
doesn't effect the CML but does change the SML
uncorrelated with the MKT.

Any other Q's please post!
Thanks

amqata

I think Schweser does not say anything about the Laffer curve. It's not a particular LOS but there is an EOC on it, in reading 26. It's not worth looking up, all you need to know is this: The Laffer curve illustrates the relationship between the tax rate and tax revenue.
That's all they can ask about it because they do not discuss it in depth or anything, it's on page 437, book 2.

Flok

Laffer curve is on pages 180-181 in book 2. LOS 26a states "Describe the Laffer curve and its relation to supply side economics."

lc26mizzou

More stuff...

just concepts, but good to know..all are in CFAI Book Vol 1. will keep posting more stuff.

Semivariance - 316
Semideviation - 317
Pairs Arbritrage / Dutch Book Theorem - 366

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smileyface is gonna clear the CFA L2 Exam on 5th June, 2011. And making this statement won't be a violation of Code of Ethics since its a fact. ;-)

pogo

negative sharpe ratio.. cough cough the month after november cough cough.