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Hello! You definitely need to focus on why portfolio A is correct like you mentioned. However, when you have an option to select 1 of 3 portfolios, sometimes your sentence should be written in a way to implicitly show why other portfolios are not selected. For example when you say portfolio X is the one that satisfies both conditions of matching the Macaulay duration of the liability AND having a present value equal or larger than the present value of the liability, you are also saying that the other 2 portfolios do not meet these conditions. So yes you need to focus on the portfolio you pick, however, in other cases where more than 1 portfolio can satisfy the conditions, it is inevitable, you need to show why a given option is superior to the other and hence, there is a comparison that is done. What would be completely wrong is to say Portfolio B and C do not meet the conditions so I pick portfolio A! Obviously, portfolios B and C being inadequate, doesn't mean portfolio A is good! You need to state why portfolio A is the chosen one, and ensure it is clear that it is the best one in case other portfolios would also do the job but to a lesser extent. Hope that helps!

The question will specify it. And the guy in the video is right- they will ask you to choose the correct option and explain why the other 2 are incorrect. DO NOT EXPLAIN WHY THE CORRECT OPTION IS RIGHT, it will not get you mark and waste your precious time.

@@tim00zz nope they never, took the exam

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For more expert advices on FinTech Industy, just join our career conference on 16 Mar. www.hksfa.org/event_details_identity.php?id=895