2008 CAFI exam Q1 (2)

Believing the two questions are very similiar, I compared 2008 Q1 to 2006 Q1. 1.Both investors state they want to maintain the real value of their portfolio. 2006 Q1 regards it as a factor that decrease the investor’s ability to take risk, but 2008 Q1 does not count this point in the correct answers for “identify two factors that decrease investor’s ability to take risk”. Does this ponit out-dated? 2. In 2006 Q1, the return objective is 8.73%. CFAI states in the correct answer:“He (the investor) has investable assets that are more than sufficient to cover his retirement objectives.” In 2008 Q1, the return objective is 9.53%. CFAI says:“They have a moderate asset base relative to required cash flows from the portfolio” Can I regard 9% or so as a threshold of “Significant assets base” and “Moderate assets base”? I think it may be useful for me to answer the questions in CFAI land.

I have read it But from your post I can tell you : It is always a good idea to maintain the real value of portfolio regardless the type of investor that we talking about, individuals, or institutionals

i still dont understand how they are above average risk tolerance. they are relying on thier portfolio to fully pay their mortgage