 # Schweser book 5 page 76

question 3 b - currency allocation. where do the C values of 5.33% and 5.28% come from that they use in the example in the answer on page 81?

What??? I have no idea what you are referring to…!!

if you look at the answer provided on page 81, Schewser gives one example for each part. In the case of quesiton 3 b, the ‘c’ values (that form part of the equation) are 5.33% and 5.28%. I understand where the weights come from, but i’m not following where the value for the ‘c’ variables…

Oh…I see what you mean now. Sorry about that. Damn lazy Schweser people. Here is how the full equation should be written out: For China 0.5(11.83-6.5)-0.45(10.78-5.5)=0.289% 11.83-6.5=5.33% (The number you are looking for) 10.78-5.5=5.28% (The number you are looking for) When you said ‘C’, I didn’t know what you meant by that. Now I see you were referring to the algerbric expression for the equation.

Thanks - that’s the help i was looking for. and i’m surprised i didn’t figure that out. Must have been the hangover. Must appreciated. Simple explanations are the best.