标题: Return requirement - additive or multiplicative? [打印本页] 作者: bchadwick 时间: 2011-7-11 19:39 标题: Return requirement - additive or multiplicative?
Examples in CFAI and Schweser (Schweser in particular) tend to switch between an additive approximate of the return requirement and a more precise multiplicative calculation.
Does anyone have any thoughts on which one we should use by default for the exam? Or are these calculations session specific?作者: Valores 时间: 2011-7-11 19:39
it is not wrong to use additive... you would not be taken away points for that.. but to be on the safe side, I would use multiplicative method, which gives you the precise answer..作者: liangfeng 时间: 2011-7-11 19:39
this can also affect subsequent Q's - eg exam 2004 Q6 if you use the additive you get 8% or 8.16 if geometric. when it comes to selecting the best portfolio for the org there are portfolios that fal within that range so that if you used geometric you would reject a portfolio as not meeting the return requirement.
while that portfolio would supposedly have been rejected anyway fr having too much cash (3% too much??) it is still a little worrying if that is not the case...
