So lets assume that a question asks to determine the risk tolerance and justify our response with a reason.
Is it ok to justify with “retired lives to active lives is 5%” or do we need also to add “lower cash flow needs”. In other words is it ok to only cite sth from the vignette or do we need our own reason too?
The second phrase would be appropriate to an Explain or Discuss command work, but what about justify?
I would try to add the additional reason if time permits typically the test I do is if I can ask myself… so what? Then I have to write more especially if it’s something I’m citing from the case… the tough part is determining what is going too deep and wasting time ie. what you can assume the marker know and how much time I have to get through the question. I would love to be super thorough and explain everything but will run out of time. I also gauge by number of marks per points I write, ie 2 points = two reasons
If the questions you asked is for 3 marks including circling higher or lower tolerance I would answer
Higher tolerance (1mark)
low ratio of retired lives vs active lives (1mark) therefore lower liquidity needs allowing higher risk tolerance (1mark)
That’s what I think
Thanks for your reply.
If that is the case then what is the different from “explain” and “discuss”?
Again this is just my take on it and reading the command word doc from CFAI. They’re all similar
Justify - prove why your selection is correct and make the reader think you know what you’re talking about
Discuss - list out and describe the pros and cons of whatever their asking about. Give both sides of the argument
Explain - list out a process and relationships of how a certain concept works kind of like a work flow.
Then there’s compare/contrast
Most of the time I see Justify
The one that tripped me up for a while was actually “Evaluate” these statements.
Also with Justify, if you’re making a choice between portfolio A, B or C (for instance) and you need to Justify your selection, you also need to rule out the other two as part of your justification.
You won’t score full marks unless you’ve justified why you’ve chosen what you’ve chosen, and ruled out the other options, from what I understand.
What you have to write depends on the layout of the template.
If the template has the selected choice in a box of its own, then your justification need simply establish that your choice is good.
If the choice is grouped in a box with other choices, then your justification has to establish that your choice is good and that the others are not.
hi
i have sent you a DM. plz respnd
So, in the example above, do we need both “retired lives to active lives is 5%” and “lower cash flow needs”?
Maybe you should send S2000 your DM… good luck.