CFAI V4 P108 & Q29 The definition of “Portfolio rate of Return” on P.108 shall be the commonly defined “Return on Equity”, right ? Why CFAI has this different definition ? This cause confusion to me & I gave the wrong answer to Q29.
And their definition of “Return on Equity” actually is the commonly defined “Return on Funds Invested (Equity + Borrowed fund)” or so-called ROI. How come they can define in a contrary way ?
AMC, These terms are loosely defined. You have to look at the question set up to figure out which equity they are referring to. Hope that helps.
derswap07 Wrote: ------------------------------------------------------- > AMC, > > These terms are loosely defined. You have to look > at the question set up to figure out which equity > they are referring to. > > Hope that helps. TKVM for your advice ! I am really confused by them. So be careful of this issue on exam.