How are you grading this with respect to partial credit? If you show the wrong work and get the right answer? Etc. How does CFAI grade it?
No one knows. I just use the formulas from Schweser.
AndyPettitteIsGreat Wrote: -------------------------------------------------------> > How does CFAI grade it? http://www.analystforum.com/phorums/read.php?13,1210749,1210776#msg-1210776
Bump
Agreed. Apply the schweser formatting for grading is probably the best move. You could also pay to get graded.
The minutes dictate the number of points for the question. You’ll have to assign the points to the various components of the question and go from there. How you divide the points will depend on the question specifics, but you don’t have to be perfect.
I can’t speak for grading services, but grading my own mocks seems to be very helpful.
can you get partial points? lets say the question is worth 4, could you get a 1.5?
for instance, if an equation has 5 inputs and you get 4/5 of them right…
They assign only whole numbers of points.
Hi! For return requirements for Endowments, not understood why they add “increase in operating expenses” as well. Increase in operating expenses is expressed as a percentage of existing operating expenses and not as a percentage of investable assets. So, as per me return requirement should look like = (1+5%)(1+1.5%)-1 5% is desired growth in real value of assets. 1.5% is, say, Operational expenses. But, in the solutions, they say, it is = (1+5%)(1+1.5%)(1+2%)-1 Where 2% is rise in operational expenses. Can anybody help?
In order to protect the real value of the assets in the endowment, you need to achieve a return that compensates for the growth in opex of the institution that you are funding. In fact, let’s say that funding is 5% assets they cover opex at 1.5% inflation is 1% and growth in opex is 2%.
In this case you still use the opex growth of the industry/institution to calculate your return requirement (and not simply inflation). It functions like a more specific inflation. If you have to pay $100 in opex this year, but $102 next year, you want to account for that extra 2% nominal return to protect the real value of assets.
6 points for stating a one sentence return objective seems excessive.
Wouldn’t assigning equal weights per section and then weighting each individual question by the proportion of its minutes in that section be more accurate?
6 points for stating a one sentence return objective seems excessive.
Wouldn’t assigning equal weights per section and then weighting each individual question by the proportion of its minutes in that section be more accurate?