In Schweser I’ve come across (or at least have in my notes) where we can multiply or add to get the total required return for asset allocation. For example: required return =7% and port expenses = .35%. 7.35% or 7.373% However, when I did this for the 2008 CFAI exam I got a return that was 9.46% vs. 9.4%. The problem is that when I calculated the weights needed for the corner portfolios, my weights were off by 5% (30% vs CFAIs 25%). I gave myself 0 credit for this, but I’m curious whether CFAI would have taken either answer. Thanks.
CFAI is likely to give you full credits regardless of which method you use…