IPS – Schweser Practice Exam Book 2 (Exam 1) – risk objective

This topic has 5 replies, 4 voices, and was last updated Oct-178:05 am by MM12.

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- Alta12
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  22 Oct 2017 at 12:20 am
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  @ravivooda @vincentt‌
  
  IPS states:
  “I would prefer that the portfolio not lose more than 3% of its value in any one year. Since my bank account is earning 2%, however I realise that my portfolio may require some risk exposure.”
  
  Just wanted to check with you why the acceptable loss request is 2% not 3%?
- RaviVooda
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  - CFA Level 3
  22 Oct 2017 at 1:27 am
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  @alta12, I think they have given wrong. It should be 3% only. If you see answer for 1C, they have used 3% only. @vincentt what is your view?
- Alta12
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  22 Oct 2017 at 1:35 am
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  @ravivooda yes, I saw they used 2% as the answer for 1A but used 3% for 1C. No Schweser errata for practice exams. Not sure if this was a Schweser typo? I used 3% in my answers for the entire question.
- RaviVooda
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  - CFA Level 3
  22 Oct 2017 at 1:38 am
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  @alta12, I too used 3% only. I think we are right
- vincentt
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  - CFA Level 3
  22 Oct 2017 at 4:09 am
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  @RaviVooda‌ @alta12 guess i’m late to the party. Agree with both of you that it’s 3%.
- MM12
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  - CFA Level 3
  22 Oct 2017 at 8:05 am
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  Same here. I came across this practice question yesterday and was surprised at the answer. I can only assume it was a typo.
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