Morning exam - repeating the question in the answer

Here is a very practical exam-oriented question that S2000 can approve of:

Is it necessary to repeat the question statement in the answer? For example:

Question: State the return objective of the investor.

Answer 2: the return objective of the investor is 6%.

A2 is more readable to me, but also significantly more time consuming than A1. Which one would the graders accept?

Similarly:

do we need to explain the notation in a numerical problem when it will be obvious from the context? For example, given a table of allocations, proportions, active returns, active risks like this:

passive - 25% - 0 - 0

enhanced - 25% - 1.5% - 5%

manager A - 10% - 3% - 20%

manager B - 15% - 5% - 10%

calculate the active return of the portfolio.

Rp = active return of the portfolio = sum of wi Ri where

wi = proportion of each allocation

Ri = active return of each allocation, therefore

Rp = 25% * 0 + 25% * 1.5% + … = blah.

Rp = (sigma) wi Ri = 25% * 0 + 25% * 1.5% + … = blah.

(Without explaining what Rp, wi and Ri stand for.)

State: to express in words.

So I think 6% is not a great answer.

More apt would be The portfolio should generate a return sufficient to preserve its inflation adjusted value and get a an inflation adjusted amount of \$26,000 per year to fund net living expenses

Calcuate the return , show your calculation:

Calculate : To ascertain or determine by mathematical processes.

Show: To set forth in a statement, account, or description; to make evident or clear.

Assets: x,y, z

Expenditure : a , b , c

Income: d

taxes : e

living:f

real return return expected = (1+inflation)*( e+f-d ) /(x+y+z-a-b-c) = 6%

nominal return = (1+inflation)*(1+0.06) = 8.2%

etc etc

Thanks Janakisri