Sometimes when we are calculating returns, we need to know the meanings of roots and exponents. This may be especially true when we have to enter things on the calculator, like CIPM candidates are required to do on exams. In mathematics, the n-th root of a number x is a number r which, when raised […]
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One of the students in my CIPM Expert Level Prep Classes asked me to explain the solution to the questions #5 and #6 from the sample exam questions found on the CFA Institute’s CIPM Program page (). The vignette and questions follow below: Longitudinal Asset Management is a US-based portfolio manager investing in international equities. […]
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Over the last couple of weeks, I have been teaching our prep courses for the CIPM exams. While teaching the Principles Level course, I came across a sentence that caused some confusion: “The Modified IRR method is another estimation approach acceptable prior to 1 January 2011.” This sentence appears in the Study Session II document […]
Read MoreWhen I teach The Spaulding Group’s prep courses for the CIPM exams, I always advise candidates to carefully consider the Learning Outcome Statements in each study session, as these statements describe the subject matter that candidates are required to master. In particular, I tell the candidates to focus on the verbs in each statement (e.g., […]
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Well, I’m not sure if it got harder… but certainly there is quite a bit more content? I am in the process of updating the materials I use to teach The Spaulding Group’s CIPM Prep Classes (Principles and Expert Levels), and in reviewing the 2011 curriculum, I see that some of the content has shifted […]
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Earlier this week, my boss, David Spaulding surmised on his blog about the possibility that the mere existence of indexes may be a reason for “above average” performance, as changes in index constituents often results in trading in the newly added stocks, which often causes their prices to rise. The question of whether the Standard […]
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At the Expert Level, CIPM candidates are required to learn a few of the more commonly used linking methodologies for smoothing the attribution effects that come from arithmetic models. The required methodologies include: Cariño Menchero GRAP Of these methods, the GRAP method is my personal favorite because of it’s simplicity… which may not be apparent […]
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Recently I received a question from one of our verification clients regarding what I call “in transition” assets – basically accounts that are in the process of moving from one category to another with respect to the firm’s GIPS compliant performance presentations. In answering, I thought that this is the type of interpretative question that […]
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I suspect that most current CIPM candidates at both the Principles and Expert levels are about to sit for their exams this week – that’s what the statistics tell us. (CFA Institute shortened the test taking window from two months to one month for this very reason, effective this period.) You may very likely be […]
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The structure of the Expert Level exam is 80 multiple choice questions based on 20 vignettes. Thus, for each vignette there are four questions. Each multiple choice question will have three possible answers. Please consider this suggestion in light of your own specific test taking strategies, I suggest that you take the following approach to […]
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