We had our March Performance Measurement Think Tank call earlier this week, and as usual, it was a good session of questions and polls. What did we cover? Discussion topics/questions included: Do GIPS requirements extend to third-party performance preparers? Is...
CIPM Exam Tips & Tricks
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Performance Measurement Think Tank Summary – March 2016
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GIPS and Hedge Funds
Back in November, I spoke on GIPS and hedge funds at a conference hosted by Rimes. I was reminded the other day that I planned to share this video snippet here, but hadn't gotten around to sharing the post. But, the topic is still quite relevant, so, here it is......
Performance Measurement Think Tank Summary – September 2015
We had our September Performance Measurement Think Tank call earlier this week, and it was another interesting session of questions and polls. What did we cover? Discussion topics/questions included: What are we seeing in the industry with respect to software vendor...
Using the Stats Worksheet to Calculate Tracking Error
In a previous post I covered how to calculate standard deviation using the TI BA II Plus calculator; in a more recent post I covered how this calculation could be done on the HP 12C calculator. CIPM candidates should also keep in mind that those methods can be used to...
What is the Sharpe Ratio… in words?
Occasionally, when teaching our classes, I get a question along the lines of, "Can you explain what the Sharpe Ratio is, in 100 words or less?" Here's what I say (I'll try to be concise, but it may be over 100 words... You could have chosen to invest without taking...
Stated Annual Rates and Effective Annual Rates – Example
A couple of CIPM candidates have contacted me recently asking for an explanation of one of the exhibits in the CIPM Principles Level curriculum that deals with the subjects of stated annual rates and effective annual rates. That exhibit (Reading 4, Exhibit 3) shows a...
Calculating Standard Deviation Using the Stats Worksheet (HP 12C)
In a previous blog post, I covered how one can make use of the statistics worksheet on the TI BA II Plus calculator to calculate standard deviation. In today's post, I will cover the keystrokes for doing this on the statistics calculator on the HP 12C calculator....
What is Shortfall Risk?
An Expert Level CIPM candidate recently emailed me regarding a question on the sample exam found on the CFA Institute website in the CIPM Program area at this link. Specifically they asked a question regarding question #12, which asks about the shortfall risk of the...
TWR vs. IRR: When does GIPS Require One or the Other?
Readers of my blog at the former location may remember that I covered this subject in a previous post... somehow that post did not get converted to the new location of the blog on this website, so I am re-addressing the subject here. Thus, most of the content is from...
Option Hedge Ratio
Continuing on the theme of errata, the CIPM Program recently made a change to one of the Learning Outcome Statements in the Return Measurement study session at the Expert Level. I am happy to see this change made, as I made this suggestion several years ago. One of...