Did something change in the cirriculum that makes it so Human capital is not a consideration of ability to take risk. Looking at previous exams answers that increase ability to take risk, Human Capital Remaining is considered an answer, but in 2010, they don’t seem to list it as a valid response? I would think it would be. Anyone know why?
I will try. Human capital could be considered risky or bond like. Just saying you have human capital isnt enough for it to warrant to be a consideration in the risk tolerance part of the IPS. I think it would have to say what kind of human capital (professor vs. sales) and even then I think this human capital piece is not even in the IPS section of the curriculum (at least I cant recall seeign it). Human capital would be a stand alone question.
It shows up as a valid answer though on the 2008 morning session essay sample questions, Question 1B -They are young and have more human capital