Schweser Exam 2 (Volume 1)

In question 7, since the firm is an insurance company, in the IPS I separated the portfolio into a fixed segment and a surplus segment for the risk/return objectives and for the liquidity and time horizon constraints. There is nothing about that in the guideline answer. I’m freaking out!! Help! Does the fixed/surplus portfolio only apply to life insurance companies? Thanks in advance.

I have not done this one yet. But I think you are right. I think they have different time constraint and so it should be separated. I mean if you separate them it would give clearer pic of IPS.

Thanks…I’m having a hard time figuring out what would count as correct and what wouldn’t when I compare my answer to Schweser’s. I’m so sick of IPSs. :slight_smile:

I took the test this morning. Did the exact same thing. I think Schweser just got a little lazy on their canned responses for this one. IMO.