For the IPS creation for individuals and institutions for risk/return objectives (for constraints as well) should we be stating below average, average, above average, etc… For Schweser they seem to use it sometimes and not on other questions. How can we tell when we should be using them? -Thanks.
for risk and return yes.
for return? For return you should state what are the goals capital preservation/appreciation/current income nominal/real pre-tax/after tax For risk i would state willingness, ability and then overall (average/below average/above average)
Yes, sorry for Risk only.
Ok thanks that seems to make sense. However, i’m still confused though since one of Schweser’s questions for risk does not specify above/below tolerance (Book 1 Exam 1 Morning Session for the institutional life insurer). I’ll have to look at past CFAI exams. These question are giving me a tough time.