Discuss Exam FM, Spring 2007

[admin]

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[ml692787]

no dollar weighted time weighted and short sale of stock on exam i was a little upset about that...the new material questions were extremely easy too bad i didnt retain any information from that textbook

[EdKJ]

What did everyone think?
There were a lot of concept-testing questions that used too many words and not enough numbers.

Ed

[ml692787]

yeah there were like 4 or 5 straight out word problems i mean i didnt take the 2006 exams but based on 2005 there were only like 2

[JUICE]

There were only two questions of which I was unsure.

The first was the immunization problem, where I believe the object was to have the assets exceed liability in order for the convexity of the former to exceed the latter.

The other was the problem where you were given averages of portfolio and investment year rates and then were asked to derive the new money rate..... can anyone shed some light on this one?

[Rick Ross]

No continuous annuities, 6-7 questions from derivatives markets.... for the second to last question about new money did anyone get E, 10%?

[JUICE]

E was my guess.

I figured, if anything, I was outthinking myself.

[Rick Ross]

Me too, it seemed like the question was too easy

[ml692787]

yeah i think you were just supposed to use the portfolio rate the new money earns the same as the main fund...the main fund is is measured by portfolio rate

[sha6188]

I think you were supposed to use investment method