How do they not add inflation to get the nominal required return? They do state salaries and expenses are “a wash” i.e. both grow at inflation, but still you have to protect the PORTFOLIO from inflation, so why is 4% not added (or multiplied) here?
They gave you the fact that the portfolio should grow to 15 Mill BRL at the end of the period and it is 10.2 Mill BRL now. So that final figure has inflation built in, doesn’t it?
Yah thats probably it, didn’t think about that.
Did you download 2008 last year? I’m only seeing back to 2009 on the website:
http://www.cfainstitute.org/cfaprogram/courseofstudy/samples/Pages/index.aspx
2008 disappears when 2011 is uploaded there…