2007 Exam Question 8

CFA Level III
#1

B this is so subjective to say the least. In 2002 100% was assighned to Value indexes. In 2006 you have 4% assigned towards Growth indexes. I chose based on this that there was a style drift----WRONg My question: what % change will be considered significant?

#2

can you post the question? i’d be tempted to say that with 4% change in style that htere is the appearance of a style drift but not conclusive yet. I’d look for anything that is 7% or 8"% or more before claiming style drift. Maybe even as low as 5%, but 4% is the grey area for me. why did i choose those percentages (5% or higher)? I have no idea…they seem material to me compared to the lower percentages…hows this for a crappy response.

#3

I believe others have also expressed their frustration on this. The %changes are such that it can be interpreted either way depending on how you are feeling that day :slight_smile:

#4

I remember the question asking “significant” change. But I have to check.