Reading 25 - Question 11 - D page 329 Answer p. 336

Quick question: The answer for the IR in answer D is quite simple 1.45.

However the answer asks to compare the new mix to the original asset mix and the answer states that the IR factor increased by 2.17.

However, In answer C, it is clearly stated that the current asset mix IR is 0.67% …therefore why is the increase 2.17?? and not .78

Is there something i am missing?

1.45 / 0.67 = 2.16 times …

thank you…i guess i couldn’t see the obvious.