Can someone tell me up to what extent do we need to stretch here.Formulas are so dense and EOC Page number 478 question 1 is all about formulas and calculations.
What does LOS says about memorizing formulas here?? What are we responsible for this topic?
I think if you can’t memorize the formulas then at the very least remember the main takeaways (i.e. how does alpha and std error affect weight, how does beta of the portfolio affect weight, etc). I’m going to try to memorize the formulas but I fully expect conceptual question rather than mathematical questions on stuff like this.
You don’t need to remember any formulas from section 4-6 as listed at the start of the reading. Why do people keep bringing this up?
The only calculation that is most likely required is shrinking the alpha by R^2 and possibly the information ratio (appraisal ratio)
I didn’t realize you didn’t need to memorize these formulas (and I read a lot of posts on this forum). The EOC questions require you to know the formulas so I assumed they were required for the exam. Like I said though, I think it’s difficult to test stuff like this due to time constraints, so conceptual question is going to be what’s tested rather than calc.
Thanks.
Thank you guys …i also thought the same