GIPS quiz above

Wendy01

real estate , performance of composite with more than 5 protfolios must contain which internal dispersion
A high and low annual TW return
B range
C standard deviation
D interquartile range
E any of above

lcw77

A



Edited 1 time(s). Last edit at Tuesday, May 31, 2011 at 09:09PM by Paraguay.

NakedPuts2011

Okay this I had ZERO clue.......

Explanation behind this? Why is it different for real estate?

ohai

This question definitely made me uncomfortable. Thought I was about done studying.

NakedPuts2011

markCFAIL Wrote:
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> This question definitely made me uncomfortable.
> Thought I was about done studying.

This is from the official GIPS. I am not even 100% it is in the book.

6.A.16.
The following items MUST be presented in each COMPLIANT PRESENTATION:
a. As a measure of INTERNAL DISPERSION, high and low annual TIME-WEIGHTED RATES OF RETURN for the individual PORTFOLIOS in the COMPOSITE. If the COMPOSITE contains five or fewer PORTFOLIOS for the full year, a measure of INTERNAL DISPERSION is not REQUIRED.
b. As of each annual period end, the percentage of COMPOSITE assets valued using an EXTERNAL VALUATION during the annual period.



Edited 1 time(s). Last edit at Tuesday, May 31, 2011 at 09:21PM by Paraguay.

bpdulog

A

NO EXCUSES

canadiananalyst

This is only for real estate right? For everything else you have the option of

1) Equal weighted
2) Asset weighted
3) high low range
4) Intequartile range
5) range

justin88

A quick question: Is internal dispersion required for Private Equity?

mcmc

answer is A
I don't notice any internal dispersion required for Private Equity

Chuckrox

Soccertom9 Wrote:
-------------------------------------------------------
> This is only for real estate right? For
> everything else you have the option of
>
> 1) Equal weighted
> 2) Asset weighted
> 3) high low range
> 4) Intequartile range
> 5) range

Incorrect. You can use any measure you want for regular composites:

"Note that the GIPS standards do not limit firms to using one of the measures of internal dispersion introduced above. A firm may prefer another way of expressing composite dispersion. The method chosen should, however, fairly represent the range of returns for each annual period."
(CFAI, Volume 6, page. 317)