# AM technique

I’ve noticed in the AM solutions that CFAI’s answers look something like this (assuming it’s a calculation question, say for the Sharpe Ratio): CFAI answer-----------------> risk free rate = xx% portfolio standard deviation = xx% Portfolio return = xx% Sharpe Ratio = (Rp - Rf)/std deviation of the portfolio = (xx - xx)/xx = xx whereas my answer would look like-----------> Sharpe Ratio = (xx -xx)/xx = xx In other words I never remember to outline all the variables first and write the equation before plugging in the variables. I wonder if it matters?

I think writing out the formula and then plugging in the #s would suffice… don’t think there’s time to be any more thorough than that. maybe not even the formula if all the #s are plainly in the question somewhere?

Can we use symbols e.g. arrows up and down to represent “increase” and “decrease” triangle to represent “change” or “delta” three dots to represent “therefore”

bidder Wrote: ------------------------------------------------------- > Can we use symbols e.g. > > arrows up and down to represent “increase” and > “decrease” > triangle to represent “change” or “delta” > three dots to represent “therefore” As long as the grader can determine what it means you can abbreviate / use whatever symbols. Only do so when it’s extremely obvious (arrows and delta, maybe not …). I ended up abbreviating a ton of stuff to save time. Pretty sure I didn’t lose any points because of it.

Thanks for the info McLeod81. I always use the three dot thingo for ‘therefore’ so it’ll definitely be appearing on my exam paper!

Thanks newsuper. Yes I though the three dot “therefore” symbol was obvious. What about up arrows and down arrows? Or should we write increase and decrease?

I’ll opt for increase and decrease to be safe.