Level Two Schweser books- Book 3 on Corp Finance and Port Management Question #3 on pg 310 on PMI… answer saysweights increase for low alpha forecast stocks…this doesnt seem to match up with the A answer they gave which is that the allocation decreased… can anyone else please verify this?
you’re right- A is wrong, should be B- their explanation sounds ok to me.
Look at errata on the website Page: 312 - Correction Concept Checker 3 The correct letter answer is B, but the explanation text is correct. ( Posted: 2008-12-22)