CFA Level 1 December 2011

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About this group
Hello everyone Registrations for CFA Level 1 - December 2011 exams have opened. Am creating this thread for relevant/related discussions to follow. FYI: [image] * Important Notice: * > We have observed that lot of user...
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Congratulations to all those who cleared L1 :thumbsup:

Please continue on following threads for further discussions:

Sharing/Asking opinion on CFA: http://www.pagalguy.com/discussions/need-some-opinions-on-cfa-25012326

Planning for CFA L2 in June 2012: http://www.pagalguy.com/discussions/cfa-level-2-june-2012-25069789

Planning for CFA L1 in June 2012 : http://www.pagalguy.com/discussions/cfa-level-1-june-2012-25070434

Regards
Varun

** MBA is hyped but post MBA life is over hyped **
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I have not understood the following explanation: Can somebody through some light on it.
Jillian is choosing between two mutual funds. Fund A has a front-end load of 4%, a net asset value (NAV) of $60.00, and an expected return of 13.0%. Fund B has a redemption fee of 1.5%, a NAV of $27, and an expected return of 10%. Jillian will invest $50,000 in either fund. Which of the following statements is most accurate if Jillian has a 6-month holding period? The:
A)
investor is better off with the redemption fee fund by $592.50.
B) investor is better off with the front-end load fund by $120.00.
C) investor is better off with the redemption fee fund by $712.50. The correct answer is A) investor is better off with the redemption fee fund by $592.50.

Front end load fund:
$50,000 (1 0.04)(1.065)
= $51,120.00

Redemption fee fund:
$50,000 (1.05)(1 0.015)
= $51,712.50

Redemption fee fund advantage

$ 592.50


I am sorry but unlike the CAT threads the following for this thread is not sufficient to expect regular replies but let me try helping you here :

  1. For a fund with front load x% your invested amount P will effectively become I where I = P*(1-x%) because P*x% you will lose upfront as fees.
  2. So for a annual return of r% and holding period t (in years) the end value of the investment I will be A = I*(1+r%)^t, but if t is less than 1 then for end amount A,we usually use the formula
    A = I*(1+r%*t).
  3. And finally assuming the redemption load y%, the value received at redemption will be A*(1-y%) as A*y% will be lost as redemption fee.

By combining the three points you can see the for investment P and time period t being less than 1 year the value at redemption, V will be
V = P*(1-x%)*(1+r%*t)*(1-y%)

Notice that in your example the y is zero in case 1 and x is zero in case 2, hence the explanation given by Kaplan. :)

Regards,
ANDy
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slipstream100 Says
buddy I solved 0 papers and got through but just barely. I knew the kaplan Q&A; (book not cd) very well... strongly suggest you do the Qs in the CD. moderate and hard Qs were the ones i did... not all but as many as I could for heavyweights like FRA, Ethics, Quant, FI. Once you have done CD Qs for topics you are not confident in, just do the Q Papers from Kaplans books. should see you through 😃 :)

Thanks buddy. ll solve as many questions possible dis tym around.
congrats:-)
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I have not understood the following explanation: Can somebody through some light on it.



Jillian is choosing between two mutual funds. Fund A has a front-end load of 4%, a net asset value (NAV) of $60.00, and an expected return of 13.0%. Fund B has a redemption fee of 1.5%, a NAV of $27, and an expected return of 10%. Jillian will invest $50,000 in either fund. Which of the following statements is most accurate if Jillian has a 6-month holding period? The:
A)
investor is better off with the redemption fee fund by $592.50.
B) investor is better off with the front-end load fund by $120.00.
C) investor is better off with the redemption fee fund by $712.50. The correct answer is A) investor is better off with the redemption fee fund by $592.50.

Front end load fund:
$50,000 (1 - 0.04)(1.065)
= $51,120.00
Redemption fee fund:
$50,000 (1.05)(1 - 0.015)
= $51,712.50
Redemption fee fund advantage

$ 592.50

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I could not pass dec level 1 exam.
gonna work even harder die tym...plz suggest how to go about it now? how many question papers shud be solved?
I had studied a lot but i think i didnt solve enough question papers. plz help. Thank U.
CONGRATS TO ALL WHO HAVE PASSED THE EXAM:-)

buddy I solved 0 papers and got through but just barely. I knew the kaplan Q&A; (book not cd) very well... strongly suggest you do the Qs in the CD. moderate and hard Qs were the ones i did... not all but as many as I could for heavyweights like FRA, Ethics, Quant, FI. Once you have done CD Qs for topics you are not confident in, just do the Q Papers from Kaplans books. should see you through 😃 😃
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hope.rajat Says
@all is it absolutely necessary to have passport to sit for level 1 exam?

afaik - YES it is
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@all is it absolutely necessary to have passport to sit for level 1 exam?

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I could not pass dec level 1 exam.
gonna work even harder die tym...plz suggest how to go about it now? how many question papers shud be solved?
I had studied a lot but i think i didnt solve enough question papers. plz help. Thank U.
CONGRATS TO ALL WHO HAVE PASSED THE EXAM:-)

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Cleared

Congrats to all those who made it. Now onwards n upwards for level 2. Anybody got links to any blogs which are helpful for level 2 preps.

Cheers!

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thanx!
tell me what u want to know.?


strategy or pattern of study that has helped u achieve this..things that u think should share & will help me...which papers to solve..how much to practice problems, on final time from where have to done the revision made ur own notes or used secret sauce?
sequence of chapters anything that u think is important at the time of preparing...
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