In this question it says why we might expect to portfolio A leading to higher returns. How do we know that this is asking us to explain why portfolio A might have higher returns compared to portfolio B? I read this as why portfolio A might have higher returns in the next 12 months than it has had in the last 12 months? Thank you
Hi Rachael - I agree there is some ambiguity in the wording here. The main steer comes from portfolio B being referred to in the paragraph immediately prior to that question part, so we have to ask ourselves 'why have they bothered to mention portfolio B here'? Having said that, even if it was interpreted as meaning relative to previously (rather than relative to portfolio B) it is still possible to pick up decent marks as the basic ideas re portfolio A doing well are valid under either interpretation.