Classic 1/n diversification shenanigan

CFA Level III Portfolio Management
#1

So on the CFA mock papers one of the questions is one of those long winded, multi-step, several formula, deductive style questions ( you all probably remember the one) -

some dude was commenting like “How the hell on earth do CFA Institute expect us to answer this question in 3 MINUTES”

I was like, Duuuuuuuude, you have obviously not studied Behavioral Finance because you are showing classic symptoms of being both naive and applying an over simple 1/n diversification strategy!! CFA give us 180 minutes to answer 60 questions, how you choose to allocate that time is totally at your discretion. LOL

Just something to lighten the mood for a moment :slightly_smiling_face: :sunglasses: (<<< that emoticon is supposed to be “cool”, it looks more like “I’ve been studying too long”)

#2

I definitely remember that question. To be fair, I would expect that kind of question to more realistically appear as an essay question than an MC. Anyways, while you’re tongue in cheek on this thread, I think you’re 100% right. Besides, most questions can be solved MUCH faster than 3 minutes so having a long MC question isn’t really the end of the world.