I am working at following LOS LOS i: Diagram an investment problem, using a tree diagram. My question is that since the command word is “Diagram” do we generally get this type of questions at exam ? As I think they will be time consuming and I read someone wrote recently that we don’t get diagrams at Level 1 - for level 2 It can be appropriate for example for bionomial option pricing. This question also applies to economics questions do we get diagrams to explain the affect of certain economic variable etc?
I came across tree diagram that just ask us about the expected value. I also came across payoff diagram that ask about the breakeven point, profit point etc.