Probably I need to hire an English turtor to deal with CFA exam…
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Client saves USD25,000 of his after-tax income every year.
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As part of his normal expense, clients annually provide USD30,000 of support to local youth sporting leagues.
So USD30,000 includes in normal expense right?
Annual cash inflow: USD 25,000
If the question changes to
- Apart from his normal expense, clients annually provide USD30,000 of support to local youth sporting leagues.
Annual cash inflow should be USD 25,000 - 30,000 = USD -5,000?
Is my understanding correct?
Q1E
The question gives the client’s full portfolio with weighting and ask “Which asset class resembles his human capital?”
I don’t understand what’s relevant between portoflio weights vs. resemble his human capital…
How to improve English reading skill…