Schweser Practice Exam 3 AM Q#7

Anyone else find this question especially irritating? It gives a scenario and asks to specifically identify the type of moral hazard which the answers were “Entrenchment Strategy” and “Extravagant Projects”. I don’t see this in the Schweser notes anywhere… maybe it’s in the CFAI text?

those were 2012 material

Thanks!

wow, i didnt get this question also. good to know thanks passme

Yeah it’s in their errata…still, incredibly annoying to pay so much and receive irrelevant material.

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  • Correction Exam 3 AM question 7.A “Moral Hazard” is no longer in the curriculum. Question 7.B the correct LOS reference is SS12 LOS 30.c. Posted: April 04, 2013