This might seem like an obvious question, but when deriving ratios that involve making adjustments that ONLY analysts would do (eg: removing goodwill from assets when calculating P/BV), will the CFAI put both ‘correct’ ratios as possible choices for the answer? ie - will the non-adjusted and adjusted ratio both be there? If so, I assume we would select the one that analysts would choose…? Thanks in advance.

They will probably ask you to ‘calculate’ ratios based on reported financial statements, and to ‘determine’ the effect of adjusted in (higher, lower, unchanged compared to reported ratios). Their questions are VERY crisp. They will explicitly mention what they are looking for.

Thanks beatthecfa - I’ve done a couple Schweser exams, and I get it now.