Schweser Test 1 Q 2

Roy’s Safety first Rp-Rmin/SD Why do they use negative 2 instead of just 2 for the min?

Dont have it, but did they state the minimum return was a -2% haha…In reality it should be X-2/SD and not X-(-2)/SD which would be X+2/SD

It just says the T-Bill rates are 2%

Ha, Never mind, I am an idiot… It is a continuation of the previous question.

Is that the question where he states the minimum acceptable (loss in this case) is 2%?? If so, yeah, that one got me too.

yeaaa that was loss of 2% not the gain of 2%,.

Yea I just saw the 2% up above and used it without knowing or thinking why they are using the RF rate as the MIN. Better to make the mistake now…