Has anyone actually managed to get any required return calculation (individual or institution) in the past AM exams spot on correct? [without any help or taking a sneak peek] I’ve done several of them, but I haven’t got one single one fully right in the way CFAI wants to see it. Some of them were close, but…
Not yet. I have over thought both years I have done. I will before I walk into that exam though.
I think key is doing the cash flow analysis, helps me a lot to structure the whole thing.
I think I have gotten a couple of them right or very close, I know the feeling though. Every one has their own “flavor”. I got the first required return calculation correct on the 2008 exam perfectly correct - for the Carvalhos. However, I butchered the second required return calculation (deducted mortgage expense from asset base and adjusted for inflation - off by like 4%).