by admin | Apr 28, 2011 | carve-outs, CIPM, CIPM expert, CIPM Principles, GIPS
A CIPM Principles Level candidate emailed the following question to me:I was wondering if you could answer this question for me:For Session 8 Q&A 7 Composite definition, how can carve-outs, included in composites prior to January 1, 2010, without separately...
by admin | Apr 28, 2011 | call options, CIPM, CIPM expert
There are several ways that options differ from futures contracts. One of those ways in which they differ is that options are securities that must be acquired in exchange for physical cash. By contrast, in acquiring a futures contract position, one does not need to...
by admin | Apr 17, 2011 | base currency returns, CIPM, CIPM expert, multicurrency performance
One of the participants in last week’s webinar on CIPM Q & A asked me to explain the solution to the question #7 from the sample exam questions found on the CFA Institute’s CIPM Program page (). The vignette and question follow below: Longitudinal...
by admin | Apr 15, 2011 | CIPM, CIPM expert, HP 12C, internal rate of return, IRR, money-weighted return, MWR, TI BA II Plus
The following steps may be used to calculate internal rate of return using one of the financial calculators (HP 12C and TI BA II Plus):1. Identify all external cash flows, including beginning and ending market values, and arrange them in chronological order.2. Arrange...
by admin | Apr 11, 2011 | annualization, CIPM, CIPM expert, CIPM Principles, exponents, geometric linking, roots
Sometimes when we are calculating returns, we need to know the meanings of roots and exponents. This may be especially true when we have to enter things on the calculator, like CIPM candidates are required to do on exams.In mathematics, the n-th root of a number x is...
by admin | Apr 4, 2011 | base currency returns, CIPM, CIPM expert, multicurrency performance
One of the students in my CIPM Expert Level Prep Classes asked me to explain the solution to the questions #5 and #6 from the sample exam questions found on the CFA Institute’s CIPM Program page (). The vignette and questions follow below:Longitudinal Asset...