I’ve got a question regarding Q8A of the 2012 A.M. exam.
They ask you to state the number of contracts you need to trade to alter equity exposure. To achieve that, you’ll need to 1) Set one portion of the portfolio to beta=0 2) Adjust the beta of the other part.
I did basically the same as they did in the solution (obviously less detailed). However, I didn’t round my results after part 1 and 2, but only for the final answer. In this case it makes a difference, as the number differs by 1 for equities and bonds. I guess that in reality, you wouldn’t round in between since every rounding makes your exposure less exact (and less trades result in lower costs).
Would my answer still get the full amount of points, or is there a specific instruction that the amounts of futures to trade have to be rounded after every calculation?
Is there any general statement by the CFAI on how they treat rounding differences or how many digits to use for your results?
Thanks!