USTC
04-23-2006, 11:48 AM
I noticed in this question the CAS solution does check to see whether it is all right to focus only on the largest-liability-smallest-asset senario(Asset =10000, and Liab=15000). But in some of the solutions in the All 10 manual, it used this method without verifying the assumption. I am wondering whether it is OK in the REAL exam. I know it is not that hard to verify, but our time is so limited.
By the way, I used exp(-0.05) to discount the 2,810, but the solution used (1.05)^(-1). Did I miss anything or both of them should be fine?
Thanks.
USTC
By the way, I used exp(-0.05) to discount the 2,810, but the solution used (1.05)^(-1). Did I miss anything or both of them should be fine?
Thanks.
USTC