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

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

  • This topic has 5 replies, 4 voices, and was last updated Oct-17 by MM12.
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    • Alta12
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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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      @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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      @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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      @alta12, I too used 3% only. I think we are right

    • vincentt
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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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      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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