CFA am #3C

The question asks about an appropriate benchmark for a mkt-neutral long-short strategy. It gives in the stem the risk free rate, equity risk premium and beta of appropriate sector index.

The guideline answer is it should be the risk free rate.

I wrote that it could be the risk free rate or else a separate long and short benchmark using the appropriate sector index.

Would I lose points for adding the second part or is it sufficient that I included the risk free rate part as a portion of my response?

i think you should only put 1 answer rather than 2 different ones.

Can’t speak to the points issue, but the book only mentions risk free as the appropriate index.

As a general rule, never answer more than is required, you could be penalized for the slightest mistake. And you are wasting precious time