don’t some of the answer keys (not sure exactly which ones) have things under more than risk/return/constraint. sometimes 3 or 4 time. bill gates giant low cost MSFT position affects his tax outlook and is a unique circumstance. i don’t see the problem, and i thought the institute thinks likewise, but maybe i’m completely wrong.
Yeah that’s right. They included his “insider” status on the board under legal status because he needs to consider timing / disclosure issues when selling the stock. A bit of a stretch in my opinion. I don’t think they’ll penalize you for including something in another area as long as it’s correct. For example, maybe you could put the insider status under liquidity because it may keep him from selling shares (if you explained this) but you’d probably get points taken off for including it under time horizon.
mcleod, thanks, and agreed. and maybe i don’t know the original question. but my inclination is that huge position in low basis stock affects a few categories. almost all of them, but i haven’t studied this area really closely yet.