Questions/answers/ discussion regarding the 2007 AM Paper

Let’s discuss the 2007 AM paper!

Here are some issues that I found confusing:

  1. Chained questions in 1 & 2. Info (shortfall risk) given in Q1 needed to answer Q2. I didn’t know the CFAI did this.

  2. Question 7B - CPPI strategy and Constant Mix strategy? Are these in this year’s curriculum? According to acelevel.com Exam Relevancy Document, this question is relevant.

  3. Question 8 A and B - wtf is ''Rolling 3-year Monthly Sharpe Style Weight??? Is it in this year’s curriculum? According to acelevel.com Exam Relevancy Document, these questions are relevant.

That’s not what “chained questions” means. It means that you need the correct answer on one question to be able to get the correct answer on another. That’s not the case here.

Here, you need information from question 1’s vignette in question 2. That’s why there’s the boxed note at the top of each question telling you to do them in order. Technically, that’s known as a clue.

And now you know.

The Monitoring and Rebalancing reading was removed in 2019, so it’s not relevant.

Surely you could have looked in the curriculum yourself and discovered this.

They made a mistake? Color me shocked!

Equity was completely revamped this year, and the reading that had Sharpe style weights is gone.

Once again, you have the skill to have discovered this yourself. I’ve seen it.

Another mistake? (Color me shocked!)2

Better safe than sorry!