Does anyone else ever do this with quantitative questions?

CFA Level III
#1

I’m not sure if this is a trick, or I’ve just been lucky, but a lot of times I don’t even do the quantitative questions because based on the answers I know which one is correct. For example, if CFA is asking for EAR on a loan, and it gives you the original term rate (LIBOR +X) and the call option that is purchased (Strike at Y) and then the final ending rate at option expiration (Z) the multiple choice will usually be:

A) Z

B) New Number not mentioned in problem set at all

C) LIBOR+X

If the option strike Y is lower than the ending rate, Z, then I know the answer is B. Likewise if the option is out of the money, then the EAR will just be close to the LIBOR+X, or C. It might be slightly higher if the premium is super high on the option but you get my point. Does anyone else do this? Is this luck or just a benifiting from understanding what the answer should look like?

#2

I do something similar, before I even begin my calc I try to eliminate a number that looks wrong. That said, I always end up doing the calc as a check.

#3

I do that as a last resort only… and I guess wrong 66.66% of the time. I think it is nearly impossible to game their answers. They are rarely as simple to eliminate like you mentioned, but I am curious to hear more about your strategy if it actually does work and you are not just exhibiting representative bias - sample size neglect.

#4

Well with every topic it changes, but usually if the answers include numbers mentioned in the problem set, I don’t need to do the calculations. This obviously doesn’t apply to all questions, but when they do I usually pick and then come back to do the calc and it still works.

Maybe it’s not for everyone, but I think if timing is a concern and you have a conceptual understanding of certain subjects, sometimes that’s all you need to be able to pick the right answer.

#5

On the l2 test, I always tried to tie out to the wrong answers with incorrect methods. It helped up my confidence in my choices. Was typically able to tie out to 1/2 the math q’s

#6

wow…i just try to answer the efing question lol.

#7

always look at answer first especially in level 1; I don’t have time to calculate all.

#8

i only do stuff like this when i havent a clue how to work out the problem - which equates to 50% of the exam. MAHAHAHAHHHHHHHHHHHHHHHHHAAAAAAAAAAAAAAAAAAA