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Advice for the test

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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