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All posts for the month January, 2017

If the Level II CFA exam were given as an oral exam, 95% of the candidates would fail. Why? Because they cannot pronounce heteroskedasticity correctly (<het-ter-row-ski-das-tis-sit-tee>, eight syllables), and they cannot pronounce Modigliani correctly (<moe-dill-yaw-nee>, four syllables).  Later in this article, we’ll hit upon another: homogeneous (<hoe-moe-gee-nee-us>, five syllables). Fortunately for most Level II candidates, […]

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Absolute Advantage Absolute advantage is quite easy to understand: if it costs less in country A to make a product than it costs in country B, then country A has an absolute advantage over country B in the production of that product. Easy-peasy. Comparative Advantage Comparative advantage is a bit more complicated.  It depends not […]

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