Hello can someone confirm which one is right:
Market adjustment cost= arrival cost - (B X index cost)
Vs
Market adjustment cost = -B X index cost
Schweser says 1 is correct but just did a mock, where the guideline answer uses the latter. One has to be wrong, which one is it? Thanks!
Does the mock you just did ask for the market adjusted cost, or for the market adjustment? (There is no such thing as the market adjustment cost.)
The adjustment is the amount you add to the unadjusted cost to get the adjusted cost. It’s a subtle distinction, but the sort that CFA Institute expects you to make.
I meant to write market adjusted cost not market adjustment cost. You are correct that the mock is asking for market adjustment and not market adjusted cost. This exam writer must be trying to trick me! 
I’m sure that it’s not personal.