Mock Exam Question #57

You smart ppl tell why CFAI take an outflow ($650,000 External cash flow) from the ending market value. i tought I should have add it back because this is not a contribution but instead, it is distribution. You smart ppl, you always find an answer for me, I am for ya.

Guys, i need to know why CFAI take back the this out flow. If you cannot give a good answer, CFAI messed up your f*cking mind.

It should be +$650,000, not -$650,000

I am with you Cyn. ( If i may) therefore, I need my money back.

I need my money back.

I need my money back for duplicate question from Sample #3!!!

I know! Those CFAI ppl think that they own our mind but I got news for them; they don’t. By Saturday 5:01PM, I will get my live back.

It is absolutely ridiculous that they can publish and sell these tests with blatant errors in them. This was driving me nuts for 20 mins before I searched on here.

I had the same problem with this question. The cash flow is listed as a negative $650,000. But calculating the rate of return for the period assuming an outflow does not even come close to any of the listed answers. But if you assume it is an inflow, it is very close to the listed answers. After the exam, I checked the pdf answer key, and the answer key seems to assume that the cash flow is an inflow (ie, a positive). In my opinion, they made a mistake on the mock exam. Not sure if CFAI has posted it anywhere.

If you look at the answer provided after the test it is obvious it should be a positive. I wonder how many mistakes are on the real exam?

There was no description at all as to how to interpret the negative sign or the ending market value in that question. The negative sign you can figure out, I suppose, but was the market value BEFORE or AFTER the cash flow? No answer. Bad question. On the exam, I would have assumed it meant whatever mathematically got you in the ballpark of the returns it gave you and reverse-engineered it, but three questions away from the end of the mock and in desperate need of breakfast, I didn’t have it in me and just moved on.

that was such a shitty question… i did keep trying adding -650k but never got anywhere near any of the answers…so i did it the other way…so we’ve to be double alert on sat…!!!