Calculating RGL And UGL - Intercorporate Investments

CFA Level II
#1

From schweser Q bank - I am struggling with Investments in financial assets (FRA)

The question is asking how to calculate the Income for HFT securities.

I know dividends are included which is the sum of all Q’s = 2400

But how do we calculate the RGL and UGL. The schweser answer is giving me a headache: (Thanks in advance!)

Trading income is calculated as dividends plus all gains and losses (realized and unrealized). Total dividends are 2,400. GLI realized a loss on the sale of 200 shares at 45.00 per share for a total realized loss of 1,000. GLI has an unrealized gain of 8,000 (800× (60-50)) on the shares purchased in Q1 and 10,500 (700× (60-45)) the shares purchased in Q3, or total unrealized gains of 18,500. Therefore, total income under the trading classification is 19,900 (2,400 - 1,000 + 18,500).

Exhibit 1 - Equity Portfolio Results

2013 Q1 2013 Q2 2013 Q3__2013 Q4 Shares purchased (sold) 1,000 (200) 700 0 Total shares quarter-end 1,000 800 1,500 1,500 Purchase price 50.00 45.00 Sale price 45.00 Quarter-end market price 52.00 43.00 52.00 60.00 Total dividends 500 400 750 750

#2

Ah thats annoying when i pasted the table before submiting the comment it came out OK, but now its thrown it all off making the question really hard to understand. If any of you have seen this on the Qbank please let me know - any help appreciated.

Thanks

#3

Rex, I was thinking about checking out the Kaplan Q-bank. How have you liked it so far? Currently using Wiley’s study package, but their Qbank doesn’t have that many FRA questions, so might look to get some additional ones in the near future.

#4

It’s not bad. It’s good for drilling concepts. SOme of the item sets are quite challenging and also very different to the CFA style. I would suggest you save your money and work on the CFA BB and EOC’s. Topic Tests on the CFA portal are good too.

#5

Yea, I’ve already gotten through those too. At least the EOCs are all done, I could get my hands dirty with the BBPs I suppose.