SA6, September 2008, Q1 part Viii

Discussion in 'SA6' started by majestics, Sep 22, 2012.

  1. majestics

    majestics Member

    SA6, September 2008, Q1 part Viii

    Hi,

    Could anyone explain how 130/30 is better than global equity long-short fund. we are supposed to answer for 8 marks. i couldn't understand the examiners solution.

    Thanks,
     
  2. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    Answer

    Hi,
    Sorry - I do struggle with this solution myself, and cant really add anything. The solution is very brief and has a lot of possible, but extremely high-level ideas. But comments such as "risk budgeting" and "wider aceptance of alternatives" dont mean much to me either. I may have to leave this one to see if anyone else can come up with ideas.
     

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