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- 2014-6-29
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When the test asks for "discuss one" or "justify with one" -
Be mindful that the grader may break up a run on sentence with two reasons into two justifications and only select the first to grade. Make sure you front load any sentence in this structure. For instance.
Question: Justify A portfolio and justify with one reason why the selected portfolio is the best choice.
Answer: Portfolio C is the best choice because it has exposure to real estate, commodities and most importantly has the highest Sharpe ratio, a measure of risk adjusted return.
To the grader, this may be interpreted as, "Portfolio C is the best choice because it has exposure to real estate".
If that's not on the grading grid, you might get a zero. Make sure you think about that on your response, a reword it as, "Portfolio C is the best choice because it has the highest Sharpe ratio, a measure of risk adjusted return, partly due to its diversification into real estate and commodities. "
Just something I was thinking about. Keep it in mind. |
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