How short is your answer on AM exam??? How to get full credit for short answer??

The Question ask to state ONE reason for using Crossing System, the folowing is guideline answer from CFAI in exam 2010, which already states 3 reasons: i) Large order size relative to trading volume ii) Low urgency iii) high spread. Can i just state one reason eg, large order size and get full credit ??? Guideline from Schwerser Practive volume is really that short but i’m wonderign will that give full credit??

"The ABCD order is large relative to average daily

volume and has a large spread. It is not suitable for

algorithmic trading and, given its low urgency, it

would be most appropriate to use a broker or

crossing system to mitigate the large spreads. This

will also prevent information leakage and protect

the client’s anonymity"

Definitely, I think if they have asked for one reason, they don’t even read your reason 2, 3 etc.

So better save time and write what is asked and only so much of it to get full credit.

i wouldnt be so sure about it. This is CFA guideline answer and it should be standard. The point is, in this case, if i state one reason i.e low urgency. T his could effectively eliminate Implementation shortfall but the VWAP or broker is still valid. I did the same thing, short and quick answer for my last year exam but the result for AM test wasnt as good as expected coz i answered all the questions with spare time. I’m wondering if my short answer didnt get full credit is a reason :frowning:


hmmm, We were told countless times by our teachers at Schweser that they wanted 2 sentences max and thats how I have been answering them.

2 sentences max?? honestly?

Yeah, they say get to the point. But after reading what the poster said above this could change my prep for the next two weeks.

shot through the heart and you’re to blame,CFA,you give love a bad name!!

I also took Schweser, and received similar guidance. Not a strict 2 sentence max, but to answer a question completely and move on. As he described, anything you write is subject to a deduction in points. If a guideline answer shows more than the requested number of answers, my understanding is that is just meant to show all POSSIBLE answers, not all NECESSARY answers.

An example the instructor gave was: a question asks for one reason, such as the one above, and you give two, there is no upside. The grader starts with your first answer. If it’s wrong, you lose the points and he moves on – doesn’t matter if the second reason you provided is right. If the first answer is right, he looks at the next thing you wrote. If it’s correct, congrats you just did twice the work for the same number of points. If it’s wrong, congrats you had the right answer but still lost all the points. It’s not a la carte or best-of scoring, and the graders don’t care if you know more than what they’re asking for. This guy was unwavering in this, so I am going with that guidance.


More punctuation marks will definitely help.

31ejm pretty much nailed it!

I guess 1 reason but must be the “full” reason. Like in my example, the first reason can eliminate one option but not for the other two, so it is not yet a reason to your final choice. Hence, not sufficient to get full mark. I think it makes sense.