cityboy

It's the thing with risk premiums, illiquidity premiums and degree of segmentation and integration.

It's in one of the economics sections...

oneboy

Did you guys all attend the 3-day workshop thus the concentration with the BLUE BOXES? I personally haven't done them as /i feel the workshop question book covers alot of the blue boxes material.

mik82

JP_RL_CFA Wrote:
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> have a strong feeling they are gonna test that.


Same.... I have taken 2007-2010 morning, and have not seen one question related. I have taken various mocks, and seen it maybe once outta 10. This is "overdue" (gamblers fallacy?)

Colum

Thanks all... that example is actually a little complex. not hard to understand, but takes time. Just hope I can still remember all that under the time pressure if it shows up.

mcmc

markCFAIL Wrote:
-------------------------------------------------------
> JP_RL_CFA Wrote:
> --------------------------------------------------
> -----
> > have a strong feeling they are gonna test that.
>
>
> Same.... I have taken 2007-2010 morning, and have
> not seen one question related. I have taken
> various mocks, and seen it maybe once outta 10.
> This is "overdue" (gamblers fallacy?)

I wouldn't think an item set though and if it was it would be the simpler relationships. Not (Beta)(Beta)(Variance MKT) / (SD1)(SD2) = correlation.

zwjy

That formula frustrates me.... When is it just (Beta*Beta*Var) versus (Beta*Beta*Var)/(SD1*SD2)

I've seen both... blah..

nannan66

Numerator is Covariance.

Denominator turns covariance into correlation.

I figured that formula out in 2 seconds. It took me 3 read throughs to realize that Beta = correlation(SDasset/SDmkt)