CFAI 2010 morning mock question 8 part a

Can someone explain to me why when the corridor widths are set at +/- 10% going from a target weighting of 40% to a weight of 45% is in violation of this corridor width? Is this an error on the CFAI’s part or am I missing something?


Permissible range (%)

Large Cap 27-33

IE 27-33

Fi - 36-44

FI is crossing range, rebalance to SAA weights

oh man, clearly…not an absolute percentage move. got it, thanks