Hi, I have some questions regarding 2011 morning essay questions:
Q1A: why revocable trust will be faced with legal claim, which kind of legal claim and under which circumstance it will have a legal risk?
Q1B: I agree that discusssion 4 is loss aversion, but why loss aversion is framing, they are totally different, so why the answer says discussion 4 is framing, I can’t see any frame
Q3B, when expected inflation increases, it demand a higher norminal return, how can it derive a higher real return, they are totally different, so how risk tolerance increase?, the second explanation also confusing, inflation increases, why they use cash to hedge, they can use real estate or commodity to hedge, why cash?
Q3D, why action 1 is not chosen, decresing spend rate also can make endownment can’t meet the goal, isn’t it?
Q5c, the lady is equity analyst and the answer says she is young and higher human capital, thus can’t invest more in the equity, so young people can’t invest more stock in portfolio?