Accrued Equivalent

CFA Level III Portfolio Management
#1

In CAFI Mock 2 Q 17, I do not know where is the below equation for the AE rate stated in teh curiculum, because the one I have seen is different.

_ The one stated in the curiculum: r_(1 – TAE) = RAE

Q. Using Exhibit 2, the accrual equivalent after tax annual return that Buylak calculates for Kasey’s investment portfolio is closest to:

  1. 7.35%.
  2. 7.45%.
  3. 7.58%

_ The Mock’s equation: _ Accrual Equivalent Annual Return % = 100% × [(Ending Value/Beginning Value)1/12 − 1]

#2

This is no longer in the 2019 curriculum.

#3

I could not find it in the errata, how can I find about other things that are removed.

#4

I think that section is marked optional in the text. Anything marked optional won’t be tested. Just follow the LOS statements when in doubt.

There’s also a relevancy guide by IFT that’s been posted a few times. You can just google it and find the link.