CFAI reading 42, question 3: They ask to determine what happens to RRTTLLU when circumstances change. However, the answer is given in the question, or is it? For example the question states that the ‘before’ return requirement is 7% and after is 8-10%. My confusion is that how is this a question? All you had to do was find where in the question the answer was. I was trying to come up with a super smart answer and CFAI answers are obvious. Kinda confused about this.
i think the key is to indicate why it is now 8-10 % as opposed to 7 % … with this in mind wd we be able to get away with just stating that the return requirement is just higher and why it is that way as opposed to calculating an actual % . in the event that the calculation is not as straight forward and involves before tax/ after tax BS …
I donno…most of the questions i find in CFAI i try and find a clever answer and when i look at the actual answers given, i go what!!! no brainers!
you’re just too smart for the program 