What does “determine” mean? Should I simply write the answer? Or should I explain how I got that answer? For example - “determine one factor that has contributed to the value added”. Should I just write an aswer (i.e. “yield management”) or also explain why I think so?
Thanks
Using the theory and the numbers/situations in the actual essay q , come up with an answer that you can justify?
I don’t think one word is enough in this case (that’s more of an “identify”), but I don’t think you need to go as far as an “explain” question would need. I would either use a formula/calculation or a general thought process used to find the answer.
For instance for the question you posted I might write: “portfolio manager overweighted outperforming stocks which added to the active management performance” or Sum[Wb*(Rp - Rb)] > Sum[Wb*Rb] and then include the actual numbers in my calculation.
Thanks, your answers were very helpful!