Payer swaption is to own the right to enter into a pay fixed interest rate swap. We know in an Int rate swap, if we are paying fixed and receiving floating, duration is decreased.
Payer swaption is to own the right to enter into a pay fixed interest rate swap. We know in an Int rate swap, if we are paying fixed and receiving floating, duration is decreased.
Its part of a due diligence to monitor the turnover of clients and/or assets. A significant gain or drop in either of two might signal signs of underlying problem. Manager might be forced to sell to handle client redemptions or if theres a significant gain in assets, it might be difficult to investRead more
Its part of a due diligence to monitor the turnover of clients and/or assets. A significant gain or drop in either of two might signal signs of underlying problem. Manager might be forced to sell to handle client redemptions or if theres a significant gain in assets, it might be difficult to invest it in all in attractive investments.
He wants to construct a pf representing the value factor, i.e. value bias. Value stocks are those with high book to market ratio. So he needs to buy securities with high btm ratio and sell those with low btm ratios. He is doing the opposite in Stage 2.
He wants to construct a pf representing the value factor, i.e. value bias. Value stocks are those with high book to market ratio. So he needs to buy securities with high btm ratio and sell those with low btm ratios. He is doing the opposite in Stage 2.
The current weight of investment grade bons in 15% which is already at the level of the lower policy limit as permitted by the IPS. Therefore, b cannot be the answer.
The current weight of investment grade bons in 15% which is already at the level of the lower policy limit as permitted by the IPS. Therefore, b cannot be the answer.
Because its mentioned that markets are largely expected to be non-trending, relative value strategies, such as ENM work the best under these conditions. Also, they have mentioned about the capacity to use substantial amount of leverage, which again supports the ENM strategy point.
Because its mentioned that markets are largely expected to be non-trending, relative value strategies, such as ENM work the best under these conditions. Also, they have mentioned about the capacity to use substantial amount of leverage, which again supports the ENM strategy point.
When in a recession, interest rates on the shorter maturities end of the curve fall since central banks would cut short term interest rates to boost the economy. The assumption is that this rate cut is positive for the economy and will spur it up causing inflation over time and thus higher rates inRead more
When in a recession, interest rates on the shorter maturities end of the curve fall since central banks would cut short term interest rates to boost the economy. The assumption is that this rate cut is positive for the economy and will spur it up causing inflation over time and thus higher rates in the long term making the curve steep.
CFA Level III Trade Strategy & Execution
Its correct
Its correct
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Payer swaption is to own the right to enter into a pay fixed interest rate swap. We know in an Int rate swap, if we are paying fixed and receiving floating, duration is decreased.
Payer swaption is to own the right to enter into a pay fixed interest rate swap. We know in an Int rate swap, if we are paying fixed and receiving floating, duration is decreased.
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Yes
Yes
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Its part of a due diligence to monitor the turnover of clients and/or assets. A significant gain or drop in either of two might signal signs of underlying problem. Manager might be forced to sell to handle client redemptions or if theres a significant gain in assets, it might be difficult to investRead more
Its part of a due diligence to monitor the turnover of clients and/or assets. A significant gain or drop in either of two might signal signs of underlying problem. Manager might be forced to sell to handle client redemptions or if theres a significant gain in assets, it might be difficult to invest it in all in attractive investments.
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He wants to construct a pf representing the value factor, i.e. value bias. Value stocks are those with high book to market ratio. So he needs to buy securities with high btm ratio and sell those with low btm ratios. He is doing the opposite in Stage 2.
He wants to construct a pf representing the value factor, i.e. value bias. Value stocks are those with high book to market ratio. So he needs to buy securities with high btm ratio and sell those with low btm ratios. He is doing the opposite in Stage 2.
See lessHey guys how is this answer a and not b for question 3?
The current weight of investment grade bons in 15% which is already at the level of the lower policy limit as permitted by the IPS. Therefore, b cannot be the answer.
The current weight of investment grade bons in 15% which is already at the level of the lower policy limit as permitted by the IPS. Therefore, b cannot be the answer.
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Because its mentioned that markets are largely expected to be non-trending, relative value strategies, such as ENM work the best under these conditions. Also, they have mentioned about the capacity to use substantial amount of leverage, which again supports the ENM strategy point.
Because its mentioned that markets are largely expected to be non-trending, relative value strategies, such as ENM work the best under these conditions. Also, they have mentioned about the capacity to use substantial amount of leverage, which again supports the ENM strategy point.
See lessCFA institute question clarification
Yes the solution is wrong.
Yes the solution is wrong.
See lessOption Greeks
It will be positive since gamma of stocks is zero and if you are long on options, your gamma is positive.
It will be positive since gamma of stocks is zero and if you are long on options, your gamma is positive.
See lesseconomics and investment market
When in a recession, interest rates on the shorter maturities end of the curve fall since central banks would cut short term interest rates to boost the economy. The assumption is that this rate cut is positive for the economy and will spur it up causing inflation over time and thus higher rates inRead more
When in a recession, interest rates on the shorter maturities end of the curve fall since central banks would cut short term interest rates to boost the economy. The assumption is that this rate cut is positive for the economy and will spur it up causing inflation over time and thus higher rates in the long term making the curve steep.
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