“CFA institute has a tradition of making one vignette on something that seems like it’s not that big a thing in the curriculum - in 2008 it was Balance of payments and in 2007 it was the Treynor-Black model” My guess is something towards the end of the Quant material. Time Series related… (if i forecast the subject i want it to be the least now, the chances are that i will be wrong and it would actually end up being something else) Anyone else wanna venture a guess? I figure we can come back to this thread after the exam.
my guess is as good as or as bad as yours… about now, I have a salsa going on in my brain - and everything looks like a big giant curveball, with the boomerang as well…
cpk I’m much more worried about you destroying the MPS for everyone else…have some mercy man 
i just got a q in qbank the other day with “yardeni model” or something or other as one of the answer choices. i scratched my head and said, i have not the slightest idea what that is.
^ i dont recall that term either. was it an option in a wrong answer or part of the question?
I think any sort of guessing on what material will come up on this test will only hurt you.
yardeni model - came up somewhere in the Economics readings - if I remember right… no further recall though.
Which of the following statements concerning the choice of an equity index benchmark is least accurate? A) The Yardeni model utilizes historical bond yields. B) Price-to-earnings (P/E) ratios differ significantly across firms of various size. C) For large-cap stocks, the mean P/E should be used as a benchmark.
dont remember yardeni at all… Guessing for fun cant hurt you… However, if you study based on your guesses you are a fool… It makes me study harder when i see ideas you guys post… like if someone were to suggest somethign i have overlooked… like this yardeni… i will probably go learn what that is now, so if by that 1 in a million chaqnce occurs, i wont swing and miss… For me, I will venture to take a guess a random question will be on NNI in the econ section… Net national income = GNI - Depreciation *its impossible to measure a nations depreciation, so this NNI is rarely used and only a theory.
Your answer: A was correct! The Yardeni model relates the current earnings yield on the market to both the current yield on A-rated corporate bonds and the consensus 5-year earnings growth rate. the other answers sounded ok so i went with yardeni. here’s what it is just for giggles.
ps- that minsky question on part 2 of the crunch- that’s new this year… seems like a very easy thing to throw a softball type question up and watch people whiff who are using old materials or just overlook that small little section. certainly not something for a whole item set, but a point is a point is a point. let’s win every one we can people. keep the random stuff coming for the next 2 months or anything you see in CFAI text that is missing from schweser.
think your right bannisja… i will start a new thread later tonight when i am studying about random facts… . I will try to post one a day to keep us sharp
I bet the more obscure post-merger defense mechanisms will come up: Crown jewel defense - target sells major asset to a neutral third party. Pac-man defense - target can defend itself by making a counteroffer to acquire the acquirer. White squire defense - target seeks friendly third party that buys a minority stake in the target without buying the entire company. Minority stake big enough to block hostile bid. High risk of litigation.
i love the the term pacman defense for some reason…lol
there is a poster on AF with the alias…pacman defense
They’ll probably have 3 ridiculously difficult, full vignettes on Porter’s 5 forces.
Somebody told me that time series have never been tested on any level of any CFA exam… ever.
bannisja Wrote: ------------------------------------------------------- > Your answer: A was correct! > > The Yardeni model relates the current earnings > yield on the market to both the current yield on > A-rated corporate bonds and the consensus 5-year > earnings growth rate. > > the other answers sounded ok so i went with > yardeni. here’s what it is just for giggles. pg 451, cfai text: Yardeni developed a model that incorporates the expected growth rate in earnings - a variable that is missing in the Fed model. Yardeni’s model is: CEY = CBY - b * LTEG + Residual CEY is current earnings yield on the market index CBY is current Moody’s A rated corporate bond yield LTEG is the consensus five year earnings growth rate forecast for the market index. b measures weight the market gives to five year earnings projections Noting that CEY is E/P and taking the inverse of both sides, Yardini obtains the following expression for the justified P/E on the market: P/E = 1 / (CBY - b * LTEG)
^ just copied that from the text. not sure if we really need to know any / all of that
someone beat me to it, but that national income accounting stuff seems classic… not too intuitive, confusing, small chapter, most people probably study it at end, if at all. i’d say more obscure than balance of payments (although then they throw in twists)