CFAI Reading 14, Q3, pg 424-425

[samiah.khngamil.com]

Hi guys,
Q2 & Q3 both mention about a 35 year old stockbroker/equity trader whose income is highly correlated to risky asset returns/exhibits a 0.9 correlation to performance of S&P 500. Both questions ask to recommend the optimal portfolio. Q2 recommends a 65% Stocks & 35% Bonds srategy while Q3 recommends an 80%Stocks & 20%Bonds strategy…
Given the same time horizon & proffessions shouldn’t the optimal allocation be the same for both questions??

 

[S2000magician]

This has been discussed here several times. CFA Institute seems to be sticking with their answers, though the rest of us think they’re mistaken.
You can try searching for the other threads. Good luck.