utility loss??? question at CFAVolume 6 Reading 71

Anyone has any idea about the calculation about utility loss for the active portfolio management calculation? I don’t see any study related to it, but it is asked at the Practice Problem (don’t remember which question, 2nd one, should be, I don’t have the book with me now). I don’t think we are supposed to know that in the LOS, should we memorize this kind of freaking math? thanks

Did you see the Note on p. 467: “Candidates are not responsible, within Reading 71, for deriving or memorizing the formulas introduced in Sections 4-6” so if the calculation you mention is in those sections, we’re not responsible for it. Supposedly if it’s not in the LOS we’re not responsible for it. Supposedly if it appears in an “optional” segment, we are not responsible for it. However, past L2 exams have included instances of all of the above, so…beware!

Thanks go4it, I don’t think I was trying to memorize it, and I don’t see if it would be a chance it would appear in exam without mention anything in LOS and context of Reading. It just so bizzare it comes at the practice question…