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  #81  
Old 06-30-2020, 09:52 PM
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I"m still digesting.

p > sigma_d/sigma_e (invest all in debt)
Cov(d,e)/[sigma_d*sigma_e] > sigma_d/sigma_e
Cov(d,e) > sigma_d^2

If p = 1 then you would just invest entirely in debt in order to get the lowest variance.

Ahh I am still confused. I just don't understand why sigma_d/sigma_e is that threshhold.
Imo that threshold probably doesn't matter much for this exam but for a derivation, I think you can start with the fact Marcie outlined that the risk-return curve develops a bend as correlation decreases.

That threshold would be hit for a correlation value in which the risk-return curve gets a negative derivative. This is because diversification benefit creates a new min variance portfolio that's to the left of both debt and equity, so first the curve goes left (negative derivative) towards the new min variance portfolio then goes right (positive derivative) instead of the regular risk-return curve that has a positive derivative and only 'goes right' so the minimum variance portfolio in this case is debt only.
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  #82  
Old 06-30-2020, 10:37 PM
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CAS needs to bite the bullet and tell us this thing is going to be online asap. My company's not letting us go back to the office until way after October, and I don't see how in-person exam logistics are going to work with how bad things are starting to get.
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  #83  
Old 06-30-2020, 11:05 PM
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CAS needs to bite the bullet and tell us this thing is going to be online asap. My company's not letting us go back to the office until way after October, and I don't see how in-person exam logistics are going to work with how bad things are starting to get.
Last I heard, they're still trying to get it done in person. I'd say that's likely to change in the new few weeks as online definitely seems to be a better option.
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  #84  
Old 07-01-2020, 12:19 PM
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Finding it a bit difficult to stay motivated learning material for like the 5th time. I started watching the TIA videos but ended up skipping so much of them since a lot of the information seemed too general and just went into doing problems and flashcards instead.

I think I might start re-reading the source instead to re-learn rather than a study guide since I feel like I remember the general points, but I'm wondering how everyone's been approaching going back into it after the break.
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  #85  
Old 07-01-2020, 12:24 PM
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I took a two month break. It feels like starting over.
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  #86  
Old 07-01-2020, 12:24 PM
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I think Pearson Vue is probably doable. SOA is doing exams in Prometric.
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  #87  
Old 07-01-2020, 08:24 PM
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I'm thinking about taking a two week break. Hopefully by then CAS will make it clear if the fall sitting will be converted to CBT or not
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  #88  
Old 07-02-2020, 12:48 AM
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I'm thinking about taking a two week break. Hopefully by then CAS will make it clear if the fall sitting will be converted to CBT or not
Always be studyin' imo
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Old 07-02-2020, 01:45 AM
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Always be studyin' imo
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  #90  
Old 07-04-2020, 04:32 PM
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Alright, officially getting back into studying. I plan to just go through all the material & do questions again, but motivation is gone.
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