What is the best acceptable grading strategy /time saving for the AM exam when it is required to show the calculations to write just the calcs vs both formula and calcs.?
Showing your calculations helps only when your answer is wrong.
You never need to show the formula separately (e.g., with variables instead of numbers).
when it says " show your calculations" it means write down the formula , define all the variables and then input the values? or just write the formula and input the values?
it wont say “show your calculations” it’ll have a key action word like “calculate” or “describe”. For calculate, especially if the problem is worth a lot, it’s sometimes good to quickly write the formula that you’re gonna use before you do the problem so if you mess up the answer, it shows them that you understand what inputs go where- this is especially true if it’s like 8 points. You’ll get partial credit this way usually. If it’s only a couple points they really only need you to write the numbers down and give an answer. If it’s two points i would literally just do it on my calculator and write just the answer and circle it. As you go through mocks you’ll see what I mean- it basically depends on the time alloted (points) per subquestion. But to answer your question (TLDR), NO you don’t need to define variables and write the general formula.
An example should suffice.
Suppose that you’re given this information:
- Shares ordered: 10,000
- Benchmark price: €40.00 / share
- Cancellation price: €40.15 / share
- Shares purchased: 8,500
You’re asked to compute the missed opportunity cost in basis points.
The formula is:
Missed opportunity cost = [(ordered − filled) / ordered] × [(cancellation – benchmark) / benchmark]
The correct answer is 5.625 bps. If you write only “5.625 bps”, you’ll get _ full credit _. If all you write is, say, “6.525 bps”, you’ll get zero. To get some partial credit for showing your calculations, all you need to write is something on the order of:
[(10,000 − 8,500) / 10,000] × [(€40.15 – €40.00) / €40.00]
Sadly, you’re completely mistaken.
Between 1999 and 2018 (the last year for which we have a published actual Level III morning exam), the phrase " Show your calculations" (or some trivial variation thereof) has appeared 121 times, an average of 6.05 times per exam.
yeah I was wrong, thanks for clearing it up. Magician continues to school me in the forum lol. Literally have never been more wrong on an internet forum in my life
Then you need to post on more fora.
At this stage, you should probably be asking me, “How do you know that it’s 121?”