Answering in short (example)

CFA Level III
#1

Here is a question.

Discuss how the ratio of financial to human capital changes as Sanchez approaches retirement.

Answer 1

As Sanches approaches retirement, his financial capital increases and his human capital decreases. Hence ratio of financial to human capital increases.

Answer 2

As Sanches approaches retirement

  • Financial captial increases
  • Human capital decreases
  • Ratio of Finacial to human capital increases.

Answer 3

  • Financial capital increases
  • Human capital decreases
  • Ratio increases

Answer 4

  • Financial to human capital increases as Sanches approaches retirement.

Can people suggest which answer will not get full points for this question in your opinion?

#2

I would just say

Ratio of financial to human capital increases.

Answer 1 and 2 should get full credits while 3 and 4 may not get full credit as they dont explicitly mention the change in “ratio of financial to human capital” thus not asnwering the question.

#3

damn… are you serious?.. This is prob why i failed last year!!! I would have just put any one of those and thought i’d got full marks…

#4

I would say you would get full credits for answering 1 and 2… and maybe lose half a point for Answer 3.

Let say its 3 points question 1(3/3), 2(3/3) , 3(2.5/3) , 4(1/3)

#5

I agree with RT and CGY. At the most you might lose half point for not mentioning which ratio…

FWIW

I failed band 10 in 2013 and my answers were written like Answer 1.

2014 I passed pretty comfortably and my answers were written like Answer 2.

And my feeling after writing both the exams were that I had done decently well (though PM of 2014 I cracked it).