Spring 2018 (Original) Q12 a)

judyohjudyoh
in W-09-RiskClassification
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My attempt:

Screen Shot 2023-10-15 at 9.29.15 PM.png

Sample solution:

Screen Shot 2023-10-15 at 9.27.50 PM.png

Is the method I used valid (would it be considered correct) or do I have to use the off balance method that is in the sample solution? Thank you.

Comments

  • GrahamGraham

    I would need to see your Excel file with your full solution to be able to answer.

    But if you got the same answer as the sample solution then your method is likely correct. If your answer was different then it is likely incorrect. If your answer is in column T then it seems your answer is very different from the given solution so it's probably not correct.

  • judyohjudyoh

    Here is another attempt at the question. You can find my attempt at the top right and the correct solution is below the question.

    I can't seem to understand when to calculate an off balance factor using the totals versus calculating an off balance factor in the way I did (using the % change). I'm confused why I don't get the same answer when it looks like the overall change is 0 as desired. Could you help me understand how to know which method to use when doing questions like this and why the method I used and the method in the sample solution don't give the same answer?

  • GrahamGraham

    Your method is completely correct but you forgot to rebase your indicated relativities in column Y in your solution. If you do that, you will get the same answer as in the sample solution.

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