2011 Essay Question 2.c

CFA Level III
#1

The answer key have given expenses of the first year of retirement. However, @ the current time line, they haven’t got their inheritence yet. Shouldn’t the liquidity needs only states the part until year end?

If I just listed out the first yar (till receiving the inheritence), how much mark would I have gotten?

Any thoughs?

#2

don’t know that their is a time line to liquidity provision. Others could comment on this , I am not sure

#3

no, you would have also gotten the return requirement wrong as well. You need to use the expenses for the first year of retirement and the mkt value of investable assets at the start of that year.