whats your result for the personal IPS's final return rate?

CFA Level III
#1

it said to account the before tax normal rate? i use after tax/(1-t) + I and resut is around 9.5% is that right? after tax not include i is around 4.*% ------------ besides, the afternoon’s exam was too easy, much easier than last year which i took too.sigh~~ dont know why

#2

You need to pay taxes on inflation too. :wink: So I used the other way and answer was 10.2 or so.

#3

The question said only distrubutions were taxed not growth, so I thought the tax amount should be counted as an expense and included in the required return. Not sure if that’s the right thinking or not, but I think my return requirement was somewhere around yours

#4

i use this formula as in the previous exam (2003 or 2004???) CFA used this formula, though i thought it shall be after tax+i/(1-t)

#5

it said annual expenses and pension income and in the question everything was indexed to inflation, so i never added the inflation(as spending is quoted on normal basis according to schwezer). I may be wrong

#6

i think it’s above 10% for sure.

#7

i f’d this up.

#8

i had something above 10 - that 10.2 looks similar. definitely grossed up taxes after inflation.

#9

JarJarBinks Wrote: ------------------------------------------------------- > it said annual expenses and pension income and in > the question everything was indexed to inflation, > so i never added the inflation(as spending is > quoted on normal basis according to schwezer). I > may be wrong me too. my answer was 4.5%, because the assets were indexed to inflation already.

#10

I screwed this up pretty bad I think.

#11

I had 10-something.

#12

10.85 using mutiplicative???

#13

L3BeatIt Wrote: ------------------------------------------------------- > JarJarBinks Wrote: > -------------------------------------------------- > ----- > > it said annual expenses and pension income and > in > > the question everything was indexed to > inflation, > > so i never added the inflation(as spending is > > quoted on normal basis according to schwezer). > I > > may be wrong > > me too. my answer was 4.5%, because the assets > were indexed to inflation already. Yeah, but the were going to change the allocation. And even if they did keep the TIPS, the inflation premium built into the securities will still be reflected in the return.

#14

Hey, Was the mortgage down payment listed in after tax figures? (100k A.T.)

#15

i’m giving this one up. how many points was this bad boy. this and the credit risk thing.

#16

McLeod81 Wrote: ------------------------------------------------------- > Hey, > > Was the mortgage down payment listed in after tax > figures? (100k A.T.) pretty sure it was

#17

the mortgage was after tax, wasn’t sure about the 200k at 65. It wasn’t mentioned very clearly.

#18

think it just said one payment of 200k

#19

think it is just above 10% too, i forgot how much

#20

i might get a wrong answer, sigh… why include tax in this exam…sigh again