Comparing the two solutions (ACTED and examiners) the total Notional/Notional returns are very different which is strange. In examiners report: 9% In ACTED: 1142.25/1025= 11.5% I don't see how we can have such a difference. What are the differences in assumptions?
My ASET shows the Notional/Notional return as being 9%, ie same as Examiners. I'm not sure where you are getting from. The 1142.25 is the amount of fund at end of year if invested in the notional allocations and notional stocks, but not sure where you get 1025 from. Anyway, 1142.25 = 1000 *1.09 +50 *(1.09)^0.5 ie starting with 1000 and net contribution of 50 with 9% interest gives 1142.25 at end. (notional/notional)
Sorry I'm referring to "the approach used in the course notes" and not the ACTED method. The 1142.25 is the amount of the fund at end of year if invested in the notional allocations and notional stocks. It doesn't give as a % return, but if we were to calculate it like in the course notes we would divide by 1025 which is the average size of the fund.
