Hey Guys,
I am in the last phase of preparation and I am having trouble hitting the right length for answers to the morning questions of the exam. That is for the questions apart from the IPS stuff - (SS4-SS6, i found a good Schweser video on those).
I need guidance on the other questions (SS7-18) with command words such as discuss, evaluate, analyze, justify, explain etc. I studied with Schweser and the answer key in the EOC questions and practice exams seems way too long to write on exam day. They mention this, but there is not a lot of exam-day samples.
I understand that we should use bullet points and phrase as short as possible, but what is too short?
So to calibrate I am looking for some sample answers to questions that are written as they should be written on exam day. Please guide me to where I can find some samples.
Also, let me give one example:
“Liquidity risk is not a major concern for buyers of a security as opposed to sellers.”
State and justify whether the trader’s statement is correct or incorrect.
Now I would put:
- Incorrect
- Liquidity affects price and price is major concern to buyers.
The answer key (of CFA Institute, Reading 27, EOC Question 4) is:
Trader´s statement is incorrect. Buyers are concerned about the transaction costs of trades as much as sellers, so a security´s liquidity is highly relevant to buyers. In certain cases, such as a short position in stock with a limited float, the liquidity risk for the purchase side of a trade can be considerable.
Please let me know your thoughts and guide me to where I can find some material on this.
Thanks for your comments.
Best,
Nestor
I am in the last phase of preparation and I am having trouble hitting the right length for answers to the morning questions of the exam. That is for the questions apart from the IPS stuff - (SS4-SS6, i found a good Schweser video on those).
I need guidance on the other questions (SS7-18) with command words such as discuss, evaluate, analyze, justify, explain etc. I studied with Schweser and the answer key in the EOC questions and practice exams seems way too long to write on exam day. They mention this, but there is not a lot of exam-day samples.
I understand that we should use bullet points and phrase as short as possible, but what is too short?
So to calibrate I am looking for some sample answers to questions that are written as they should be written on exam day. Please guide me to where I can find some samples.
Also, let me give one example:
“Liquidity risk is not a major concern for buyers of a security as opposed to sellers.”
State and justify whether the trader’s statement is correct or incorrect.
Now I would put:
- Incorrect
- Liquidity affects price and price is major concern to buyers.
The answer key (of CFA Institute, Reading 27, EOC Question 4) is:
Trader´s statement is incorrect. Buyers are concerned about the transaction costs of trades as much as sellers, so a security´s liquidity is highly relevant to buyers. In certain cases, such as a short position in stock with a limited float, the liquidity risk for the purchase side of a trade can be considerable.
Please let me know your thoughts and guide me to where I can find some material on this.
Thanks for your comments.
Best,
Nestor