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Level III Asset Allocation – Financial Exam Help 123

Financial Exam Help 123

Category: Level III Asset Allocation

Roll Yield (Roll Return)

Jun 14, 2017

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by

Bill Campbell

in Level I Alternative Investments, Level I Derivatives, Level II Alternative Investments, Level II Derivatives, Level III Alternative Investments, Level III Asset Allocation

The idea of roll yield – or roll return, same thing – is relatively straightforward: it’s part of the increase or decrease in the value of your portfolio that arises specifically when you roll over an expiring futures or forward contract into a new contract. The other parts of that increase or decrease are the…
Cross Hedge vs. Proxy Hedge

Jun 8, 2016

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by

Bill Campbell

in Level III Asset Allocation

Level III candidates often confuse cross hedges and proxy hedges. This isn’t their fault: one of the readings makes a distinction between these, while another claims that they’re the same (though it includes a footnote that says that they’re different). Sigh. Suppose that your domestic currency is the Canadian dollar (CAD), and that you have…
More Currency Exchange Rate Stuff

May 5, 2016

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by

Bill Campbell

in Level III Asset Allocation

I came across some topics in currency exchange at Level III that seemed to be vexing some candidates, so I thought that it warranted an article. This will be a catch-all: anything on currency exchange at Level III across which I stumble I’ll include here. Domestic Currency Return vs. Local Currency Return Suppose that your…