Question 9 Vol 2 Exam 2 Schweser AM Rant

OK…rant here - How is the large option holdings not a liquidity constraint - Couldn’t a case be made that as a mid-tier manager of his company, he COULD be considered an insider. I know CFAI had this in 07… - WhyTF did Schweser use a simplistic mortgage payment calc instead of a PMT calc a la a financial calculator…there’s like a 10K difference - Why has there been no use of an invstor education statement in risk objective for a guy who is so massively over risked and overspending. I mean, I figured due to wealth and time horizion the guy has an avg risk…they said prob relatively high, so I think I’d be OK there…but I mean, his willingness to accept risk seems quite high here…no? I really think Schweser AM gudielines are crap.

I agree. Poorly constructed and thus probably a question I will not look at again while studying. I thought the very first IPS question on exam 1 (Q#3) was fairly decent as I’ve never seen a return calculation calculated that way before. Although I got it wrong b/c I didn’t adjust the 150K in expenses up to be pre-tax. I’m now afraid of missing easy points because of an incorrect pre-tax/after-tax adjustment.