S2017 #13 vs S2019 #21 invested assets
In the MSA notes, there is a comment mentioning an error with the S2017 examiners report regarding the inclusion of cash in invested assets, "(There is an error in the examiner's report solution. The Cash term is not part of invested assets. It should however still be included in the denominator of the InvYld formula. The error was corrected in the 2019.Spring #21.)"
I am having trouble finding the difference between the 2017 and 2019 solutions. Is that comment there just to point out that the formula they have in words on the 2017 question for invested assets should not include cash, but the calculation part of the question is still correct since cash should be included in the denominator? I also see that cash is included in invested assets on the BA MSA practice question excel file. Just wondering why that comment is there and what exactly is the error it is talking about? Thanks!
Comments
I found another post from May 2022 with the same question, and it looks like the formula should actually be "Invested assets + cash" (for both start and end of period) in the denominator. Just want to point out that in the 6 excel problems for MSA, it does include cash in the invested assets formula which is what the comment on BA says is wrong about the S2017 examiners report.
Just wanted to add this incase others come across the same question.
Let me double check and get back to you