Explicitly defining terms on essay?

CFA Level III
#1

Is it required to explicitly define the terms in essay question answers to get full points? When should we, or shouldn’t we define?

#2

If they ask for a definition, give them a definition.

If they don’t, don’t.

#3

Thanks!

#4

My pleasure.

#5

What about labeling every number in an equation when asked to show work?

#6

Waste of time.

If you want to write the formula, go ahead, and use the same variables that they use in the curriculum.

#7

So “(8 + 2)/(1-.25) = 13.33%” would be an example of all we need to write (assuming that answers the question of course, say in this example converting an 8% real after tax return to pretax nominal assuming a 25% tax rate and a 2% inflation)

would we still get partial credit in this example if say the appropriate inflation rate for this question was actually 3% but everything else was done correctly?

#8

I believe that you’d get partial credit in that instance.