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Old 03-11-2018, 09:45 PM
Tyroil_Smoochie-Wallace Tyroil_Smoochie-Wallace is offline
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Default FA CDEF Task 5 - Risk/Return Metric

In task 5, how in-depth was your discussion of the risk/return metric(s) you used in task 2?

I can see a couple possibilities here:

1) Discuss the metric(s) in detail in the body of the memo. (e.g. "this is what my metric is, these are what the parts mean, this is why I picked it)

2) Give a brief, high-level description of the metric in the body of the memo (e.g. "it measures a portfolio's return in relation to its risk") and describe it in detail in the appendix

3) Give a brief, high-level description in the body of the memo, and don't really explain the detail at all

4) Something else?

I originally went with option 1 but DNMMR'd with Tasks 2 and 5 needing work.

I'm thinking I should go with option 2 or 3 (leaning 3) instead but I don't want to exclude the detail if they are looking for it. What did you all do?
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Old 03-11-2018, 09:46 PM
rocketprius92 rocketprius92 is offline
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I did choice 3, but I have yet to submit let alone get results. Submitting tomorrow afternoon!
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Old 03-12-2018, 12:32 AM
mel.fel mel.fel is offline
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Quote:
Originally Posted by rocketprius92 View Post
I did choice 3, but I have yet to submit let alone get results. Submitting tomorrow afternoon!
same! submitting tuesday.
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Old 03-12-2018, 01:47 AM
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Pkunforgivin Pkunforgivin is offline
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I did choice 3 and MMR'd
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Old 03-12-2018, 07:43 AM
sungx88 sungx88 is offline
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option 3 as well. i actually didn't even use the actual metric words. for example, instead of mean, i said average of blah blah. mmr'ed.
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Old 03-12-2018, 08:55 AM
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Sir Issac Sir Issac is offline
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Option 3 and mmr. Very high level without mentioning what the actual risk/return metric.

I mentioned the metric that I used to suggest the tax rate which was the vaR(95) which is easy to explain (95% sconfudenfe the tax will be sufficient for the CDEF to meet its objectives)

Last edited by Sir Issac; 03-12-2018 at 10:19 AM..
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Old 03-12-2018, 09:07 AM
davesned29 davesned29 is offline
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I actually didn't mention my metrics at all in my Task 5. High level comments around how the asset mix should maximize return without undue risk of loss, but that was about it.

I did specify what my tax rate represented (I used CTE75), but even that was done in one line.
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Old 03-12-2018, 09:09 AM
mel.fel mel.fel is offline
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I am mentioning my metric but a very high level description.
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