Return calculation is not my strongest point. Although i understand the concept, i get very anxious when i see a return calculation question. I want to practice these questions, and was wondering what the best source would be, other than CFAI material.
I was looking at Schweser practice exams, specifically Q1 in Practice exam 2. There is no way i can read so much material and come up with a return requirement. Is this the level of difficulty we should expect? More than difficulty, the information seems to be scattered everywhere.
Do you guys think i should stick to CFAI material for practicing these questions?
Just today I had one exam where it told me “yeah he saves 25k each year” on the top of the paper and then at the bottom of the paper it tells me “ah yeah he also spends 30k each year as part of his normal expenses”.
So what they mean is that the 30k is already considered to get to the 25k net savings… stuff like this always gets me and I wonder whether stuff like this will cost me 1-2 points or more?
Best course is to do the past papers maybe the past 10 years and focus on concepts like Individual’s return calc, Endowment’s return calc etc individually. You will start to see similarities and recurring processes to calculating these.
Also constructing a timeline usually helps temendously. (A tip I learned from Basit’s Wiley videos in level 2)
