Another "How Many Points Would I Get For This AM ?" Thread

CFA Level III
#1

The economy is going up. Which bonds should be bought/sold (2011 am ? #6).

Me:

Buy: Cyclical

Sell: Non-cyclical

Buy: Lower Credit

Sell: Higher Credit

Buy: Short Term Bonds

Sell: Long Term Bonds

CFAI:

Buy: Consumer Cyclical

Sell: Consumer Non-cyclical

Buy: Low Rated Bonds: BBB

Sell: High Rated Bonds:AA+

Buy: Short duration

Sell: Long duration

Same answers, but how specific do they want? Does anyone have any insight on the points I would receive? I wonder if this type of Q&A is why some people feel they did okay on the AM, only to see a lower final score.

#2

apart from long term vs long duration i think remaining are fine to me…

use duration instead of term. duration is measure of risk for bond.

#3

Do you buy short duration and sell long duration because the assumption is that rates will rise in a strong economy?