How do you deal with ambiguity in essay questions? into, investment, property, includes

sameeragarwal

While doing the sample exams, I have run into many cases when questions are quite ambiguous. For example, question 1 in 2009 exam, it states that any withdraw from the investment portfolio is subject to 20% tax, and it also states that it requires withdrawing 100,000 to pay off the mortgage and associated taxes(I was thinking property taxes or other liens on the property), I thought about if this associated taxes includes the tax for withdraw or not, and decided to choose the option as if it does not, given CFAI is always sneeky in this kind of questions. The guided answer proved that I was wrong. For those who took the level III exam, what is your strategy for this kind of ambiguities? Is it acceptable to provide answers on two different assumptions on the questions? Or just state the assumption used in calculation?

Darien

i did the same mistake when I did that question. i assumed that the 100,000 did not include the associated taxes. for ambiguity i would not provide answers on both assumptions. I think the best thing to do is do the answer and maybe write your assumption down so the grader is aware what you though.
That way lets say you did make a mistake in your assumption, you will still be able to get part marks.