Ok so Schweser and CFA books show the formula differently, and present the answer differently… Is it E(u)= e® + .005 (Ra)(variance) where e® and variance are plugged in as 10%=10? Or is it the same formula except the .005 becomes .5, and 10%=.10? I have seen both ways, and they provide a different answer (decimal-wise). Thoughts?
when E® and variance are given as %'s, you use .005 when E® and variance are used as decimals, you use .5
i believe it is - in the formula
Is that forula correct? Isn’t it E(u)= e® - .005 (Ra)(variance) not E(u)= e® + .005 (Ra)(variance) I thought you subtract
it is subtraction.
agree on the subtraction… sorry to confuse… have not worked on memorizing formulas yet (that’ll be Monday’s task).