Hi all, I have a question on CP3 Assignment 1 for April 2019 sitting. I had done the assignment and was reviewing my answers with the Assignment 1 solutions. On page 7 under 'Implications for business volumes and profit', it is mentioned that '... but the share price would react much more quickly'. My question - it is not mentioned anywhere in the material that the company Annuities-R-Us is listed on a stock exchange (or publicly traded). How am I supposed to write about the impact on the share price? I was understanding that we should use the content given in the advance material and the questions on the exam. Have I missed something in the question? Thank you, Kay
Interesting observation. My instinct would be if your audience is a board of directors there may be an implication of a public or proprietary structure here, but yes I would tread carefully about making assumptions or introducing information not contained within the question as you can be penalized for it. In general, I found in CP3 when you read through sample solutions you will find content that you will disagree with, but I think theyre a useful tool for structuring your communication, coming up with headings, knowing where to place charts etc. I'd be curious to know what you make of the Sept 2018 sample solution
Apologies Kay - this is indeed a shortcoming with the wording of the question - thank you for pointing it out. I will ensure it says 'proprietary' in the next edition of the question. Thank you Actueire for the observations - agreed! David
Hi David, Thank you for your reply! I have a follow-up question. Suppose if the advance material and the exam question mentions about a company being listed on a stock exchange (or publicly traded) but there is no mention of share price changes in the material/question. Would I be penalized if I write something about the effects on the share price? Regards, Kay
