1. Posts in the subject areas are now being moderated. Please do not post any details about your exam for at least 3 working days. You may not see your post appear for a day or two. See the 'Forum help' thread entitled 'Using forums during exam period' for further information. Wishing you the best of luck with your exams.
    Dismiss Notice

Past exam question Apr 2016, q 3

Discussion in 'SP5' started by Benjamin, Apr 20, 2018.

  1. Benjamin

    Benjamin Member

    Why does the solution here in ASET and examiners' report award points for proposing that fund A is active and fund B is passive? The question explicitly states that Fund A is active and Fund B is passive.

    Also, and I know this is a grey-area question but would marks be awarded for things like that if both funds underperformed the benchmark, is the benchmark appropriate or perhaps too high? It's never clear what to award marks for when self-testing.
     
    Benjamin, Apr 20, 2018
    #1
  2. Simon James

    Simon James ActEd Tutor Staff Member

    I'm not sure that marks are awarded in the examiner's report (or ASET) for simply restating that the funds are active/passive. Rather marks are awarded for explaining what these terms mean. There is some discussion of the difficulties in choosing an appropriate benchmark/index to track.
     
    Simon James, Apr 23, 2018
    #2

Share This Page