I’m sure there are threads on this, but couldn’t find anything. I’ve been working through CFAI prior exams, and today did a Schweser mock. I’m concerned about how the AM is graded. In Schweser suggested responses and grading guidelines, it makes it sound like you have to write out the formula for each problem you work to get full credit.

For instance, Equity Q = MV of Equity/(MV of Assets-MV of Liab), then actually show your inputs such as Equity Q = 2/(3-2) =1.

This example is easy, but when you start talking about formulas for relative value of gift vs. bequest or some other more complex formulas, do you have to state all the correct nomenclature, etc? Seems a bit ridiculous that you get graded on your format.

Or for instance, what if instead of putting in a formula for the required return you use calculator inputs, but you list out what inputs you used. Am I going to get dinged for that even if I get the same outcome?

Thanks for the input folks…just wondering how hard I need to study “proper” formulas to memory this late in the game.

i don’t think you need to write out the words and names of the terms in the formula. But it would be wise to write the set-up for your calculations so that if you get it wrong when you’re inputting in your calculator – the grader can at least see you knew the calculation.

Don’t stress on the “proper formula” just make sure you write down what you input into your calculator – my $0.02 maybe others feel differently

There isn’t a single person on this forum that knows exactly how the exams are graded. Obvioulsy there is a universal guideline process that all of the graders adhere to, but there is plenty of room for ambiguity amongst humans. That being said, I would think that if you show all of your work and get to the right answer you should be awarded full points regardless of whether or not you used their exact foruma verbatim. The questions do not state: “You must list the formula X to receive all credit”. Maybe they dock you a point, but I feel like that should be the most. In the case of a wrong answer, if your calculations make sense and you simply transposed something or incorrectly rounded then I still think you should recevie a majority of the credit for the question.

Most of the formula’s simply provide a short-hand way of solving for X. If you show a different method I think the CFAI should be accepting of it.

At the end of the day, the CFAI is not testing whether or not you can plug and chug, but if you understand the curriculum. If you can solve the questions in a different manner then I would think you have fulfilled your duty as a candidate and derseve full marks.