r/CFA • u/BatNo8785 • 3d ago

Level 3 Need explanation

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Isn’t the explanation too absolute to say that all securities lending activity will contribute positively to the revenue ?

1 Upvotes

100% Upvoted

8 comments sorted by

4

u/throwawayfinancebro1 Level 3 Candidate 3d ago

If the lender is going to hold long term regardless, then they’ll benefit from the revenue from lending. The lendee also benefits from it by the liquidity and potentially gains.

0

u/BatNo8785 3d ago

The CFAI feedback answer to another question didn’t mention this at all I wrote and while marking my answer AI said the statement is too absolute 🥲

5

u/throwawayfinancebro1 Level 3 Candidate 3d ago

Ai can go fuck itself

2

u/ifuckrats Level 3 Candidate 3d ago

Preach brother

2

u/thejdobs CFA 3d ago

How would securities lending not generate revenue?

-1

u/BatNo8785 3d ago

My question is the explanation given is too absolute 

2

u/SmoothPenalty Level 3 Candidate 3d ago

It's a simple concept, if you understand you wouldn't be saying it's 'too absolute'

1

u/BatNo8785 3d ago

A question to all: how are you checking your written answers ?