Anybody on the course 2 exam committee out there?

[retaker]

Are we ever going to know what the Course 2 exam committee meant by their wording of the question in which they said:
The after tax MPC is X.

I think they included the after tax to mean that it had already been multiplied by the (1-T). Some gave arguments last time that you still needed to multiply by (1-T)?

[The Drunken Actuary]

I took it to mean you do not need to multiply by (1-T) and did the problem accordingly. But what the hell do I know? As for your question, as a gambling man, I'd say the really really super safe great odds bet is that the Society will never clarify.

[Hagbard Celine]

They will implicitly answer the question at some point by asking a similar question and stating whether or not to mulitply...

[retaker]

... and what's the deal with that auction problem. I don't care what Bama says, that was a cheap shot. That crap was/ is hidden in the material, hell, it wasn't even in the edition of Brealy and Meyers I was using. CSM makes no sense of the concept.

[The Drunken Actuary]

What auction problem?

[VernSchil]

I think he's talking about the problem on the May 02 exam. I didn't take it but from reading the May02 exam thread it seemed to be a simple definition question about price discriminatory auctions. Bama Gambler gave the exact page that it's on in the text and it does also appear in my CSM manual.

[retaker]

If you had no idea what they were talking about, it wasn't easy. Duhh