Errors Found in Study Materials P2.T9. Investment Management (OLD thread)

[Nicole Seaman]

Please use this thread to let David and I know about any errors, missing/broken links, etc. that you find in the materials that are published in the study planner under P2.T9. Investment Management. This will keep our forum much more organized. We appreciate your cooperation!

PLEASE NOTE: Our Practice Question sets already have links to their specific forum threads where you can post about any errors that you find. The new forum threads are for any other materials (notes, spreadsheets, videos,etc.) where you might find errors.

Information needed for us to correct errors:

• Reading
• Page number
• Error

 

[mithunchakravarthy]

Hi,
Reading : 71
Page Number : 4
Error:
I notice the below formula mentioned "j<1", I believe it should be "j<i".



Regards
Mithun.

 

[Kaiser]

Hi,

R70.P2.T8 Grinold page 9 of the slides

Mathematically, given the that r_pa= theta_p + beta_p x r_b (3rd equation in the image below), it seems that the first equation in the screenshot below is incorrect.

The first equation says:

theta_p = r_p - beta_p x r_b

but reckon it should be:

theta_p = r_pa - beta_p x r_b (which is a basic reorganization of the 3rd equation in the image below)



Rgds,

 

[David Harper CFA FRM]

Hi @Kaiser Yes, you are correct, there is a mistake: for the third equation (ie, active return and active risk), Grinold actually gives (emphasis mine):

r(PA) = r(p) - r(b) = Θ(p) + β(PA) + r(b) per Grinold equation 4.19

 

[Kaiser]

Hi,

R71.P2.T8 Jorion, Study Notes page 13, the calculation seems incorrect.





should give us

and x =


In all cases, shows a dimensional problem as number x matrix = matrix (not number).


Rgds,

 

[David Harper CFA FRM]

Hi @Kaiser Yes, you look to be correct. Apologies! Question: what tool are you using for matrix calculation? Thanks,

 

[Kaiser]

Hi,

Thanks for the confirmation.

I was using the following webpage for a quick verification:

http://matrix.reshish.com/multiplication.php

Rgds,

 

[Kaiser]

Hi,

Minor typo in the slides R73.P2.T8 Bodie, page 21,

R_M vs R_m (R_M is used across the entire document and this is the only occurrence of R_m)



Rgds,

 

[Kaiser]

Hi,

Minor typo, R76.P2.T8, Mirabile page 7.

"... as little as $750" (vs S750)



Rgds,

 

[Part 2 Student]

David / Nicole,

Reading: Andrew Ang, Chapter 6
Page: 11
Error: In the paragraph beginning with "2. Behavioral:", line 5, should it say "result from", instead of "result in"? To me, "barriers to the entry of capital" seems to be the cause, not effect, of "persistence of behavioral biases".

Thanks.

 

[Part 2 Student]

@David / Nicole,

Reading: Andrew Ang, Chapter 10
Page: 26
Error: In the paragraph immediately underneath Table 3, line 3, should it be "$0.34(1-0.66)", instead of "$0.37(1-0.66)"?

 

[Part 2 Student]

@David / Nicole,

Reading: Andrew Ang, Chapter 13
Page: 33
Error: In the 2nd bullet paragraph, line 1, should it be "liquidity also dried up", instead of "illiquidity also dried up"?

 

[Nicole Seaman]

David / Nicole,

Reading: Andrew Ang, Chapter 6
Page: 11
Error: In the paragraph beginning with "2. Behavioral:", line 5, should it say "result from", instead of "result in"? To me, "barriers to the entry of capital" seems to be the cause, not effect, of "persistence of behavioral biases".

Thanks.

@David Harper CFA FRM can you confirm if this is an error or not. See image below from our notes:

@David / Nicole,

Reading: Andrew Ang, Chapter 10
Page: 26
Error: In the paragraph immediately underneath Table 3, line 3, should it be "$0.34(1-0.66)", instead of "$0.37(1-0.66)"?

@Part 2 Student I looked this up in the source reading, and our notes reflect what is written by Ang. @David Harper CFA FRM can you confirm that this is not an error in the original source reading? Thanks!

Notes


Source

@David / Nicole,

Reading: Andrew Ang, Chapter 13
Page: 33
Error: In the 2nd bullet paragraph, line 1, should it be "liquidity also dried up", instead of "illiquidity also dried up"?

@Part 2 Student

I also looked this up in the source reading, and our notes reflect what is written by Ang. @David Harper CFA FRM can you confirm? Thanks!

 

[Part 2 Student]

Practice Questions: Andrew Ang, Chapter 6
Page: 9
Error: In the 2nd paragraph under "Answers:", line 2, should it be "per true choice B", instead of "per truce choice B"?

 

[Galaxy]

Hi David/Nicole,

I was looking at p.6 of Part 2 Focus Review Investment Risk slides, and am wondering if the number "2" is missing (marked with red ink in my handwriting) from the formula right at the bottom (i.e. the second formula on the page, as below). I have also attached herewith the link to the original 57-page pdf file for your reference https://learn.bionicturtle.com/FRM/2016/FocusReview/PPT/P2_FR7.pdf




Please let me know.

Thanks a lot, Galaxy

 

[Nicole Seaman]

Hi David/Nicole,

I was looking at p.6 of Part 2 Focus Review Investment Risk slides, and am wondering if the number "2" is missing (marked with red ink in my handwriting) from the formula right at the bottom (i.e. the second formula on the page, as below). I have also attached herewith the link to the original 57-page pdf file for your reference https://learn.bionicturtle.com/FRM/2016/FocusReview/PPT/P2_FR7.pdf


View attachment 1388

Please let me know.

Thanks a lot, Galaxy

@Galaxy Thank you for posting here. We will be updating our focus review videos in 2018, so if this is an error, we will make sure that it does not carry over to the new video
@David Harper CFA FRM Can you confirm this is an error?

 

[David Harper CFA FRM]

Yes @Nicole Seaman that is an error, embarrassing. @Galaxy so sorry to get such a basic formula wrong ... but your diagram notes is well done, you should teach! Thank you....

 

[Galaxy]

Many thanks @David Harper CFA FRM and @Nicole Seaman , was trying to make sure that there is not a "special case" of the portfolio variance formula that I need to be aware of this coming Saturday.

 

[David Harper CFA FRM]

@Galaxy no it's just special case of my general clumsiness Good luck Saturday!

 

[Galaxy]

Many thanks!