Question on BF p.40

Hi guys,

Regarding Example 3 on page 40, could you tell where the amounts 1,568,627 and 431,373 come from (which the investor puts in layer 1 and layer 3, respectively)? Or is it just one possible solution?

Many thanks!

This was asked and answered (after some asides) here:

http://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91325938

Thanks, S2000magician!

You’re welcome.

I’m embarassed that I knew exactly which blue box this question was just from those amounts. The text doesn’t do a great job explaining how you arrive at those results.