skycfa

Can’t speak on risk ability, I never, ever, ever, get those right.  It is just too insanely subjective to me.  If the CFAI will not give you a % return that qualifies as “moderate liquidity needs” relative to portfolio size, I don’t see how this can ever have a “correct” answer.  As a matter of fact this is the one part of the test I feel VERY strongly needs to be removed.
For liquidity, yes i always include dollar amounts.  I don’t include cash reserves unless they mention it.  I doubt you will get docked for it though.
1D) good point , i don’t know what to say there.  I picked C because it was obviously the best choice, but you are correct as far as i can see about the cash
3C) I got this right, but I thought I had recalled where this was either errattad or something to where we did not have to “calculate”, just explain….
4A) I got that wrong too… i thought that was the only objective they had correctly met, and i figured that since we had already covered that it violated the risk objective we didn’t need to consider that since the question focuses on return
5A)  Buy and Hold would have a slop of 1.0, where CPPI has 1.2 in this question.  So x(TA - Floor), x = 1.2x that the cushion between total assets and the floor moves up for each change in value.
8A.) you are using 270 day bills, but you are gaining exposure through index futures.  The risk free rate is given annualized, so even if it were a 2 day t-bill you would convert the annualized rate to whatever period you are actually going to create the synthetic position over.