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WIFE Week in Financial Education (2021-06-20)

David Harper CFA FRM

David Harper CFA FRM
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Welcome to the latest WIFE. For Part 1, we have a new practice question (PQ) set for the insurance chapter (FMP-2). I have a question about the combined ratio after dividends (CRAD). This CRAD measure is interesting because some sources subtract the dividend, CRAD = CR - D, while others (like GARP) add per CRAD = CR + D. Adding the dividend seems more logical to me and is corroborated by the Triple-I. For the new dollar/time-weighted return PQ, I think I wrote my best question so far: it extends to three periods and provides the holding period returns (HPR) so the user can focus on the essential calculation (rather than the tedious HPR and net cash flows). A warning: these dollar/time-weighted return tend to elicit questions about the timing of the dividends! In regard to the curated links, the #rstats time series introduction is simply excellent. And I discovered a new source: https://future.a16z.com/ features an amazing cast of authors (e.g., stripe founder Patrick Collison). I've included an update from their Scott Kupor (MP at a16Z and author) on Direct Listings (which is a concept in the FRM.P1.FMP-1). Have a good study week!

New Practice Question (PQ) sets
In the forum
Curated links
 
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