2015 Essay Mock ? about "Justify" your response

[AlmostDoneIII]

I notice in last years Essay section they added a new Note for “Justify” questions. Stating that restating case fact’s won’t give you credit.
So I get it, we have to explain a little further of how things work blah blah blah. But doesn’t that kind of go against what we’ve been told of using bullet points and keeping it simple and to the point?
For example:
Determine the portfolio that will have the lowest shortfall risk if it uses the liability-relative approach and justify.
WIll the answer look something like this? The Bond Underline is what I feel like I have to add for it to be correct…
Portfolio X - has the highest correlation to liability - which means if the return and liabilities risk are similar, shortfall risk will be lower.
thoughts?
thanks,

 

[cebrach]

I guess they want you to tie up some of the body of knowledge, with case facts.
I think when I see the word justify, I am going to try to write something like 2-3 sentences.

 

[AlmostDoneIII]

cebrach wrote:
I guess they want you to tie up some of the body of knowledge, with case facts.
I think when I see the word justify, I am going to try to write something like 2-3 sentences.

ok thanks, I’ll do the same now. In previous mocks if a question said state if John Smith had high risk or low risk tolerance and justify. I would just make 2 bullets stating like no liquidity needs or large investable asset base relative to needs.

 

[WHPH]

I think u wanna state the theoretical framework that applies to your answer
so in the question u have above, u say
1.) low risk portfolio under liability relative is high correlation of assets and liabilities,
2.) portfolio x (highest asset liability correlation) results in lowest standard deviation of funded status, so lowest shortfall risk
this gives grader a chance to give u an extra mark for each point