My imaginary CFA results are mid-80% area for both the morning and afternoon sessions. That sounds like it predicts a pass on Saturday, though probably not at a 95% level of significance. (Does it? I have no idea.) The effect of 1 drink before / 1 during the afternoon is hard to discern although there were more wrong answers towards the end of the afternoon session than at the beginning. Also I was heartily sick of it by the end. Are there really II more levels of this thing? Do they have more stuff on them? That seems excessive.
Now I’m not going to run afoul of ethics guidelines by discussing anything on the mock exam, or real exam, or anywhere else. (Also, this is important: CFA Institute, if you’re reading this, we’re just kidding about the whole guaranteeing returns thing.) But the sense I get is that people find the ethics section particularly daunting, which, COME ON PEOPLE, you are not doing much for public perceptions of your industry. Nonetheless, as a public service for those taking the test on Saturday and looking to sharpen your skills, here’s an extra practice ethics question suggested by a reader. Read more »
I am now going to take a mock CFA exam. In order to replicate actual testing conditions as closely as possible without leaving my apartment, I will do the following:
1. Spend 2 hours* on the first session (120 questions)
2. Lunch, beer
3. Spend 2 hours on the second session (120 questions). Another beer.
4. Check answers, post results
5. Mockery. Another beer.
The CFA’s commitment to “past performance does not reflect future results” extends to its own products, saying “Performance on a mock exam should not be used in any way to predict performance on the actual exam.” But you and I know better. So tell me: Read more »
This is shaping up to be CFA week for me, and with my impending triumph/humiliation I’ve pretty much stopped thinking about much else. I’ve also stopped reading about much else, putting aside Trotsky temporarily to focus on those six stupid books. Yesterday was corporate finance – I can now unlever and relever betas like a champ – and portfolio management, which I got about halfway through before falling asleep. Today is equity and fixed income. The end is in sight!
But there’s still occasionally time to think about blast-from-the-past favorite topics, like the slow-motion disaster that is the US regulatory effort to end official reliance on ratings agencies. The latest is the OCC, which released a proposed rule today that will change the definition of “investment grade” securities, which banks can invest in, from “rated in one of the four highest rating categories by two or more NRSROs” to this: Read more »
Attentive readers may recall that a while back I signed up to take the CFA Level I exam, in order to (1) pursue my passion for standardized testing,(2) expose the secret behind-the-scenes workings of America’s trillion-dollar financial-analysis-certification business, and (3) have a major institution to stand behind my guarantees of consistent above-market investment returns. I wrote a post about it, and then mostly forgot all about it.
Thinking that the exam might be sometime in December, I looked into it a bit more this weekend. Here are some things that I learned that I didn’t previously know, though you might have:
1. The exam is given using pencil and paper at the Javits Center. I had vague visions of the anonymous computer lab where you take the Series 7 on computers from the mid-1980s. Now I have to go buy pencils.
2. All of its contents. Actually I’d read maybe 100 pages of the ethics reading but then I got bored and stopped.
In 2003, things were going pretty well for Todd J. Remis. Great, even. The equity research analyst had left Warburg Pincus Asset Management to found Hygrove Partners LLC, he was living the good life in New York City and he’d recently married Latvia native Milena Grzibovska. The wedding was an intimate affair that included less than 40 guests and took place at Castle on the Hudson in Tarrytown. A proud husband, Remis sent a photo of the happy couple to his alma mater for inclusion in its newsletter, for all his former Bowdoin College classmates to see.
Fast forward six years, and things were going less swimmingly for Todd. For starters, the Chicago Booth grad’s marriage had hit the skids, with a separation in 2008 and an official divorce by 2010. Additionally, he was unemployed, having been laid off or fired from his job at Legg Mason’s ClearBridge Advisors. And with that kind of loss and time on his hands, Todd wanted nothing more than to sit around looking at photos of memories past, specifically of the day he married Milena. Only Todd couldn’t do that, could he? At least not in the way he wanted to, which was by going through the photos chronologically, very beginning to very end, from Milena getting dressed to the bouquet toss to the last dance, laughing, crying, wiping his tears with each shot, laying down naked on a pile of them scattered on the bathroom floor and remembering how he felt that day. The reason he couldn’t do that? Because someone FUCKED Todd, good and hard. And the more Todd thought about it, the more he decided that he had to make that person pay. Read more »
That’s how two Wharton professors, Daniel Gottlieb and Kent Smetters, model their students in a recent paper that tries to explain why so many business schools have policies – typically adopted by student vote – that prevent students from disclosing their grades to employers. Seems reasonable!
We construct a model with students, schools, and employers. Students prefer larger postschool wages but dislike studying. Schools are heterogenous in their selectivity (reputation). Under disclosure, employers can observe both a student’s grades and the school’s selectivity; under non-disclosure, an employer can only observe the partial signal of the school’s selectivity.
That model leads to a bunch of equations (no charts, sorry) with conclusions that again seem pretty reasonable. The driving force for preferring a non-disclosure policy turns out to be that mean post-graduation pay has to be higher than median pay – and the authors think that this is likely at a selective school where the top students can be very valuable, but less likely for a less-selective school where everyone is clustered closer to average ability. If the average value of a Wharton student is higher than value of the average Wharton student, then making it hard for employers to figure out who is actually valuable will let everyone get paid for the optionality: Read more »
If you’re one of Moynihan’s mini-mistmakers and a slowdown in staffing, dwindling office supplies and your MD’s refusal to make eye contact have left you convinced that you’re among the 10,000/40,000/30,000 people whose brief yet brilliant tenure at Old BAC will soon be toasted over rounds at Phil’s Tavern, you may already be thinking about your next move. And it may have occurred to you that dropping a few hundred grand for two years of team building exercises, team learning projects, team drinking challenges, and individual scamming on undergraduates might be preferable to finding another job in banking / moving back in with your parents. Well, good news: no one else has thought of that yet. Read more »
It’s not just doctors and scientists that need STEM education. America’s shifting economy is demanding more trained workers in many different sectors. See how Travis Brooks got the hands-on education he needed to become a technician at the Chevron Pascagoula Refinery. Visit The Atlantic to learn more.