2012 AM Q1 - English problem

CFA Level III
#1

Probably I need to hire an English turtor to deal with CFA exam…

  • Client saves USD25,000 of his after-tax income every year.

  • As part of his normal expense, clients annually provide USD30,000 of support to local youth sporting leagues.

So USD30,000 includes in normal expense right?

Annual cash inflow: USD 25,000

If the question changes to

  • Apart from his normal expense, clients annually provide USD30,000 of support to local youth sporting leagues.

Annual cash inflow should be USD 25,000 - 30,000 = USD -5,000?

Is my understanding correct?

Q1E

The question gives the client’s full portfolio with weighting and ask “Which asset class resembles his human capital?”

I don’t understand what’s relevant between portoflio weights vs. resemble his human capital…

How to improve English reading skill…

#2

Frank, I think your understanding on the cash flows makes sense. The savings should already inlcude his normal expenses, anything over and above the normal expenses would probably eat into the savings.

On English reading, I think the best remedy for evrything and anything is practice questions to get a feel of the language CFA uses, the EOC and the blue boxes as well as the past exams and you will be fine.

#3

Thank you.

#4

“Me no English”,

the most amazing phrase you can use to avoid Jehovah Witnesses.