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Errors Found in Study Materials P2.T8. Investment Management

Nicole Seaman

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Thread starter #1
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.T8. 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
 
Last edited:
#2
Hi,
Reading : 71
Page Number : 4
Error:
I notice the below formula mentioned "j<1", I believe it should be "j<i".

upload_2016-10-16_1-42-31.png

Regards
Mithun.
 
Last edited by a moderator:
#3
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)

Screen shot 2016-11-02 at 12.16.29 AM.png

Rgds,
 

David Harper CFA FRM

David Harper CFA FRM
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#4
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
 
#5
Hi,

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

upload_2016-11-3_19-45-58.png



upload_2016-11-3_19-48-0.png should give us upload_2016-11-3_19-48-19.png

and upload_2016-11-3_19-49-25.png x upload_2016-11-3_19-49-46.png = upload_2016-11-3_19-49-55.png


In all cases, upload_2016-11-3_19-53-52.png shows a dimensional problem as number x matrix = matrix (not number).


Rgds,
 
#8
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)

Screen shot 2016-11-05 at 7.33.57 PM.png

Rgds,
 
#10
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.
 
#11
@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)"?
 
#12
@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

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Thread starter #13
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:

Ang.jpg

@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
Ang notes pg 26.jpg

Source
Ang pg 26.jpg



@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!

Ang illiquidity dried up.jpg
 

Galaxy

New Member
Subscriber
#15
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://www.bionicturtle.com/FRM/2016/FocusReview/PPT/P2_FR7.pdf


upload_2017-11-14_10-35-31.png

Please let me know.

Thanks a lot, Galaxy
 

Nicole Seaman

Chief Admin Officer
Staff member
Subscriber
Thread starter #16
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://www.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?
 
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