"Show your work" vs calculators inputs

CFA Level III
#1

Ok, this question may have been asked already,

When asked to “show your work” are we able to show our calculator inputs, i.e PV=x I/Y=y…

or would we have to write out the actual formula, say for relative value of gift vs bequest…

Thanks

#2

dunno

#3

I think it’s better to write out the equation so that if you mess up on the application / calculation you can still get partial credit as it shows you understand what is being asked. Just my 2 cents …

#4

Thanks! makes sense.

#5

I’d say it depends on time though. You could lose points elsewhere if writing out the formula caused you to run short on time and not fully answer another question somewhere. I personally don’t write out formulas in calculation questions. The exception is TVM questions, where yeah, you want to list out your calculator inputs (PV=, FV=, N= etc) and the CPT = (whatever you’re being asked to solve) then write your answer. The guideline answers on past AM exams do this so I would assume it’s appropriate. This should only come up in Individual PM questions though.

#6

I think is the better to write formulas. In TVM calculations would be time consuming so calculator inputs should be acceptable because same inputs appear in guidance answers for TVM calculations. For anything else you may earn additional point if you write a formula. Writing a formula also helps to avoid stupid errors (e.g. to miss calculate conversion factor or yield beta in Number of contracts equation).

#7

A related question: do you lose marks if you do not write the formula in words or symbols, but your answer and calculations are correct ?

#8

Im guessing in a questions where they specifically ask “show your work” you’d need to show some calc. I assume calculator input would also be fine here…

#9

I’m with JayWill on this. I don’t write out the formulas explicitly. Going to show my calculations but will probably not write out the formula.

I’m going to mark each questions as I am going through it where i’ve applied a formula and at the end if there is time, I will write out the formula at the top (leave a gap for it).