CFA CFA Level 3 IPS – Schweser Practice Exam Book 2 (Exam 1) – risk objective

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

  • Author
    Posts
    • Up
      0
      ::

      @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%?

    • Avatar of RaviVoodaRaviVooda
      Participant
        • CFA Level 3
        Up
        3
        ::

        @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?

      • Up
        1
        ::

        @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.

      • Avatar of RaviVoodaRaviVooda
        Participant
          • CFA Level 3
          Up
          1
          ::

          @alta12, I too used 3% only. I think we are right

        • Avatar of vincenttvincentt
          Participant
            • CFA Level 3
            Up
            1
            ::

            @RaviVooda‌ @alta12 guess i’m late to the party. Agree with both of you that it’s 3%.

          • Avatar of MM12MM12
            Participant
              • CFA Level 3
              Up
              1
              ::

              Same here. I came across this practice question yesterday and was surprised at the answer. I can only assume it was a typo.

          Viewing 5 reply threads
          • You must be logged in to reply to this topic.