How much detail is needed? question, interest, increase, completed

bchadwick

I am still a bit unsure as to how much detail we are supposed to give in the answers in the AM session. I just completed the 2009 CFA mock and there was a question about the spot return and collateral yield on commodity futures along the lines of "if interest rates and spot prices rise, what happens to spot and collateral return". My answer was brief: both increase. The CFA guideline answer, however, is comparatively lengthy and goes on about arbitrage and investments in the risk-free asset....is that necessary in the exam???

IAmNeil

Keep it as short as possible. Chances are that you are running out of time thus not able to answer all questions if you are too wordy. U can always come back at the end and fill it with more details.