It seems the statement about portfolio construction is taking about transfer coefficient, which come under full FLAM not FLAM alone. The question here is asking as per Fundamental Law of Asset Management. So how is Option A not the correct answer here? I don’t get it how is the Statement made by Lange entirely correct. Please explain.
I think, whenever there is even a hint of Transfer Coefficient, they’re considering FLAM and Full FLAM as analogous.
Okay..i just don’t want to commit such silly errors so, i presume the questions will be clearer in the exam right? Or i can expect it to be on the same lines like this?