CFA Level II 2010 Mock Exam PM

Scored 44/60 = 73.3%. Horrible score.

Last minute brain dump

Net Operating Asset (NOA) for calculating accruals

NOA = Operating Assets – Operating Liabilities

Operating Assets = Total Assets – cash – equivalent of cash – marketable securities

Operating Liabilities = Total Liabilities – Total Debt, where Total Debt = short term debt + long-term debt

Working Capital Investment (WCInv) for calculating FCFF/FCFE

WCInv = change (current assets – current liabilities) excluding cash, cash equivalent, notes payable and current portion of long-term debts.

Capital budget outlay

Net working Capital investment (NWCInv) used to calculate capital budgeting outlay = FCInv + NWCInv. Working capital not entirely defined.

CFA Level II 2010 Mock Exam AM

Scored 75%. Had a very bad headache after completing it.

Schweser Practice Exam Vol 1 Exam 2 PM

Scored 82% vs global average of 71%. Not bad...

Felt like dying...

I have been sickly. Have been weak physically and having continuous headache and feeling of high blood pressure. Last Thursday I went to see a doctor for having sore throat and flu. My blood pressure was indeed high. Although the sore throat is gone, the flu bug remains. I think I am facing a combination of flu and exam stress. My flu refuses to go away probably because of my low immunity due to the hefty stress. This exam is a complete sadist. One can actually die taking the exam. I advice everyone to build their physical and mental health way before the examination. Unlike CFA Level 1, I did not try hard enough to build my health up. That is why the consequence. It is horrible. Feel like dying…

Schweser Practice Exam Vol 1 Exam 2 AM

Scored 75% vs 64% world-wide average.

My brain is failing me as I am sick. Keep on eating pananol... :(

Schweser Practice Exam Vol 1 Exam 1 PM

Scored 85% verses 69% average based on 1949 samples.

Schweser Practice Exam Vol 1 Exam 1 AM

73.33% correct answers verses the average score of 69%

Flu

The CFA Level 2 is an extremely sadistic examination. I am now down with a flu. Got a sore throat and a bad headache. This slowed me down significantly. Saw a doctor yesterday and currently taking antibiotics. Although I have studied two rounds already, but the sheer volume of things to remember is causing me some problem in memorization. What is worst is that I've not started doing the mock exam although I have done more then 1200 Q banks questions. I know the QBanks questions are not reflective of the real thing. There is not much time left. Also I have some commitments in work and family and so I cannot devote 100% to studying. My brain is splitting. The CFA Level 2 is indeed an extremely sadistic examination and only meant for those who is a sadist themselves. Please do not take this exam unless you want to have a brain damage.

Models

Traditional Mode (for stock)

Currency depreciation => decrease in economic activity (short run)

=> increased in export (long run) => higher equity prices

Money demand model

High economic activity => currency appreciates

=> higher stock prices

Free market theory

Increase in real interest => currency appreciation

=> lower bond prices

Government intervention theory

Currency appreciations to the upper limit => government decrease interest rate => bond prices up.

Convertible Bonds

Download these to brain!! Come'on!!

Conversion ratio = number of common shares for each convertible bond that can be converted

Conversion value of convertible bond = market value of stock X conversion ratio

Straight value of a convertible bond = PV of CF if an option-free equivalent bond

Minimum value of convertible bond = MAX(straight value, conversion value)

Market conversion price per share = market price of convertible bond / conversion ratio

Market conversion premium per share = market conversion price per share – market price of stock

Market conversion premium ratio = market conversion premium per share / market stock price

Favourable income difference per share = coupon interest/conversion ratio– dividends per share

Premium payback premium = market conversion premium per share / favourable income difference per share

My memory has also been failing

This year’s CFA examination has been very tough. Mainly because I did not devote enough time to it due to work commitments. Last year, there was a major recession and there wasn’t much work to be done. This year, the economy has pick up and there was a number of cases to attend to. So my time for preparation was reduced. Also the amount of materials to cover is really vast. Not so sure whether will I be able to pass it. My memory has also been failing. I hope I will not waste my time on it.