Comments for Finance Train http://financetrain.com The Financial Learning Lab Sun, 19 Feb 2012 01:44:21 +0000 hourly 1 Comment on Monte Carlo Simulation – Example by Manish /monte-carlo-simulation-example/comment-page-1/#comment-2891 Manish Sun, 19 Feb 2012 01:44:21 +0000 http://financetrain.com/?p=480#comment-2891 The value should actually be 0.0010, i.e., i.e., 10%/100. I'll correct it asap. Thanks, Manish The value should actually be 0.0010, i.e., i.e., 10%/100. I’ll correct it asap.

Thanks,
Manish

]]> Comment on Monte Carlo Simulation – Example by Nikola /monte-carlo-simulation-example/comment-page-1/#comment-2890 Nikola Sat, 18 Feb 2012 23:38:15 +0000 http://financetrain.com/?p=480#comment-2890 Hello, I have same question as Radovan> How did you obtain the value 0.0014 for mean in NORMINV (D17 cell)? Thanks Hello, I have same question as Radovan> How did you obtain the value 0.0014 for mean in NORMINV (D17 cell)?
Thanks

]]> Comment on Annuity Functions in Excel by admin /annuity-functions-in-excel/comment-page-1/#comment-2879 admin Mon, 13 Feb 2012 05:13:09 +0000 http://financetrain.com/?p=925#comment-2879 Since you are having monthly cash flows, you need to convert interest rate into months, and the period also into months. Use the following formula: =PV(3.5%/12,35*12,600) = $145,176.29 Thanks, Manish Since you are having monthly cash flows, you need to convert interest rate into months, and the period also into months.

Use the following formula:

=PV(3.5%/12,35*12,600)

= $145,176.29

Thanks,
Manish

]]> Comment on Annuity Functions in Excel by hugh buchanan /annuity-functions-in-excel/comment-page-1/#comment-2878 hugh buchanan Sat, 11 Feb 2012 16:49:22 +0000 http://financetrain.com/?p=925#comment-2878 no helpful...I have a series of payments coming to me ($600/month) for the next 35 years. I want to use an interest rate of 3.5% to determine what the annuity would be worth to me right now in cash....the calculation for PV keeps giving me $2600. that cannot be true as one would run out of money before five years....why didn't the PV function work? no helpful…I have a series of payments coming to me ($600/month) for the next 35 years. I want to use an interest rate of 3.5% to determine what the annuity would be worth to me right now in cash….the calculation for PV keeps giving me $2600. that cannot be true as one would run out of money before five years….why didn’t the PV function work?

]]> Comment on CFA Level 2 Exam – 21 Week Study Plan, Part 2 of 6 by Chad James /cfa-level-2-exam-21-week-study-plan-part-2-of-6/comment-page-1/#comment-2867 Chad James Tue, 07 Feb 2012 12:14:47 +0000 http://financetrain.com/?p=672#comment-2867 I was able to pass all three exams without reading a single LOS and would not recommend getting bogged down by them. This is where the beneift of doing many, many practice questions and several mock exams comes into play. CFAI weights its topics and allocates question counts accordingly. By doing questions and mock exams a test taker gets a feel for what will be tested and how to successfully navigate that material. CFAI does not test the exact wording of LOS, rather it tests the concepts and applications behind them. I was able to pass all three exams without reading a single LOS and would not recommend getting bogged down by them. This is where the beneift of doing many, many practice questions and several mock exams comes into play. CFAI weights its topics and allocates question counts accordingly. By doing questions and mock exams a test taker gets a feel for what will be tested and how to successfully navigate that material. CFAI does not test the exact wording of LOS, rather it tests the concepts and applications behind them.

]]> Comment on CFA Level 2 Exam – 21 Week Study Plan, Part 2 of 6 by admin /cfa-level-2-exam-21-week-study-plan-part-2-of-6/comment-page-1/#comment-2863 admin Mon, 06 Feb 2012 12:58:28 +0000 http://financetrain.com/?p=672#comment-2863 Yes, I actually meant LOS. Looking forward to what you feel about revisions. Yes, I actually meant LOS. Looking forward to what you feel about revisions.

]]> Comment on CFA Level 2 Exam – 21 Week Study Plan, Part 2 of 6 by Chad James /cfa-level-2-exam-21-week-study-plan-part-2-of-6/comment-page-1/#comment-2859 Chad James Thu, 02 Feb 2012 18:38:22 +0000 http://financetrain.com/?p=672#comment-2859 jenikcarl - I wrote the L2 study plan on Finance Train (note that it is now dated by a couple of years, but still directionally valid). To your first post, I would say that you can go ahead and dive right into to Level 2. During my L2 journey, I referenced L1 a couple of times, but not often. Just have the L1 books nearby so you can reference as needed. As for L2 Quant specifically, you will largely find yourself focusing on modeling methods (cross sectional and time series regression) and examining models for validity. Correlation analysis is a pre-cursor to simple least squares regression. The biggest link between L1 and L2 Quant is understanding confidence intervals, but your L2 books should have all you need for the second exam on this matter. Regards, Chad jenikcarl -

I wrote the L2 study plan on Finance Train (note that it is now dated by a couple of years, but still directionally valid).

To your first post, I would say that you can go ahead and dive right into to Level 2. During my L2 journey, I referenced L1 a couple of times, but not often. Just have the L1 books nearby so you can reference as needed.

As for L2 Quant specifically, you will largely find yourself focusing on modeling methods (cross sectional and time series regression) and examining models for validity. Correlation analysis is a pre-cursor to simple least squares regression. The biggest link between L1 and L2 Quant is understanding confidence intervals, but your L2 books should have all you need for the second exam on this matter.

Regards,
Chad

]]> Comment on CFA Level 2 Exam – 21 Week Study Plan, Part 2 of 6 by jenikcarl /cfa-level-2-exam-21-week-study-plan-part-2-of-6/comment-page-1/#comment-2858 jenikcarl Thu, 02 Feb 2012 18:30:32 +0000 http://financetrain.com/?p=672#comment-2858 Thanks for the quick response. I did start off with the Quants Reading on Correlation. I'll post here if I do find the need to go back to Level 1 for revision. Just for the sake of clarification, AIMS, is it similar to the CFA LOS? Thanks for the quick response. I did start off with the Quants Reading on Correlation. I’ll post here if I do find the need to go back to Level 1 for revision. Just for the sake of clarification, AIMS, is it similar to the CFA LOS?

]]> Comment on CFA Level 2 Exam – 21 Week Study Plan, Part 2 of 6 by admin /cfa-level-2-exam-21-week-study-plan-part-2-of-6/comment-page-1/#comment-2856 admin Thu, 02 Feb 2012 14:06:32 +0000 http://financetrain.com/?p=672#comment-2856 You can directly start with Level 2 prep. While there are a lot of similarities with the Level 1, you should be good with the Level II material, as you will go through the Level II AIMS and the material. You can directly start with Level 2 prep. While there are a lot of similarities with the Level 1, you should be good with the Level II material, as you will go through the Level II AIMS and the material.

]]> Comment on CFA Level 2 Exam – 21 Week Study Plan, Part 2 of 6 by jenikcarl /cfa-level-2-exam-21-week-study-plan-part-2-of-6/comment-page-1/#comment-2855 jenikcarl Thu, 02 Feb 2012 14:02:14 +0000 http://financetrain.com/?p=672#comment-2855 Hi, you have a pretty solid plan in place. I was wondering if you could tell me how important it is to know the Level 1 material before starting preparation for the Level 2 material. My recollection of Level 1 is faint at best and I do not wish to waste time floundering in Level 2 prep if it requires Level 1 revision. Hi, you have a pretty solid plan in place.
I was wondering if you could tell me how important it is to know the Level 1 material before starting preparation for the Level 2 material. My recollection of Level 1 is faint at best and I do not wish to waste time floundering in Level 2 prep if it requires Level 1 revision.

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