What did you guys write for this question ?? - Const. Mix v/s CPPI v/s Buy-n-hold ?? It asked which was the best strategy based on pootfolio objectives and views of the market. A floor value of 60% was given hence i wrote CPPI but its was a flat but oscillating market so a Const mix strategy would have outperformed. Def wasnt buy-n-hold !!
it was a trending market It was CPPI
Definately CPPI.
Not sure it was a trending market !.. Definately remember reading oscillating but flat so i went back and forth on this one for a while. Somebody who wrote const. mix told be that could be write as long as you gave the correct justification for it. The question though, was quite vaguely asked - best strategy based on portfolio objectives and views of the market ???
possibly a different test
CPPI for Sho.
Put CPPI as user was keen in buying when Market was going up. Buy High Sell Low is CPPI.
can anyone remember how many marks are awarded for this?? messed up totally
Hong Kong had oscillating market and flat in the end, so constant mix for us
U.S. had trending market, so was CPPI for us.
CPPI Market trending up, he wants to buy more of equities when it’s going up and also wants to create a floor value
Sponge_Bob_CFA Wrote: ------------------------------------------------------- > U.S. had trending market, so was CPPI for us. Song_ Bob is one of the fruit I used to love But my father in law told me to stop eating or drink the jiuce because I can lost my libido right there. You know, I follow his advice. But I still missed that juice man 
They call it Corrosol in latin america and it is very popular.
Took this in Asia… I actually put Buy and Hold Was stumped by this question because the old retiree wanted to preserve her retirement funds yet want to give the rest to charity in a flat oscillting market. went for the middle of road Explained not Constant mix - Retirement fund was impt to her and in this strategy, her last dollar would be in equity Not CPPI - Flat and oscill market would be worse off than Buy and Hold wasnt thinking clearly at that time already
merv Wrote: ------------------------------------------------------- > Took this in Asia… I actually put Buy and Hold > > Was stumped by this question because the old > retiree wanted to preserve her retirement funds > yet want to give the rest to charity in a flat > oscillting market. went for the middle of road > > Explained not Constant mix - Retirement fund was > impt to her and in this strategy, her last dollar > would be in equity > > Not CPPI - Flat and oscill market would be worse > off than Buy and Hold > > wasnt thinking clearly at that time already Also the earlier part also asked for strategy in a flat oscill market and constant mix was the answer… Was thinking CFAI can’t be testing same concept twice in one question… or can they?
I put Buy and Hold as wasnt there a requirement of “not” adding anying extra to the CASH position. In CPPI, wouldnt the transactions at the time of rebalancing cause you to adjust your investments proportion to Equity, but then the left over funds would cause increasing the CASH. The client DIDNT want to increase the cash/floor position at all costs. Wouldnt that be a BUY and HOLD in a trending market?
Agree with yodhava - only in buy and hold strategy can one have the minimum Risk free asset
^nope - she said in an “uptrending” market she wanted to reduce cash - with CPPI you buy more stock and sell cash instruments to do so in an uptrending market. This would minimize
constant mix in 8080 asia another question said 60% 40% balalal i choose CPPI
Jscott24 Wrote: ------------------------------------------------------- > ^nope - she said in an “uptrending” market she > wanted to reduce cash - with CPPI you buy more > stock and sell cash instruments to do so in an > uptrending market. This would minimize In the Asia paper, i believe it was stated flat & oscillating … i think
Post_It Wrote: ------------------------------------------------------- > Agree with yodhava - only in buy and hold strategy > can one have the minimum Risk free asset glad at least someone sees it the same way as I do. In a trending market sans any restrictions you do want CPPI as you would buy more equity and benefit from the increasing equity allocation. But a clamp on the CASH position would imply a buy-and-hold which would still profit in a trending market.