Hey, are you guys planning to write out the formulas before doing the calculations (ie with the correct variables and whatnot).
Also for the return calculation questions, must we state the inflows/outflows and do a full blown accounting breakdown?
All this seems to take a lot of time.
I have the same question. Obviously I know to show my work, but I’d really rather not waste time going back and trying to learn the notations they use and such. Surely that can’t be necessary, right?
I would for the return calculations, I find that it helps me as well. I put a column to find investable assets and a column for cash flows. For something like finding # of contracts to buy/sell for a hedge or alter asset allocation, I don’t write out the full equation with variables first.
Writing out the formula with the correct notation would be helpful to get full credit.
Michael, for example, you suggest to solve H-model you will write out the formula with variables first. Then writing it with the corresponding numbers?
I would write the formula. That way if you make a small mistake and you get a bad number the grader can justify giving you more points.
Thanks for the tips gents.