Looking at examples in the text and Schweser exam 1, vol 1, question 1 I am often seeing the guideline answer jump right into calculation for the return %
Does the mean we do not need to waste time writing out “Mr. X’s objective is to retire in 10 years and will require an after tax real return of X%”
If they ask you to formulate a return objective, they want words, not numbers
If they ask you to calculate a required rate of return, they want numbers, and few words (just enough to let them know that you know what the numbers mean).
Based on past level III exam model answers from CFAI, the preferred method is
Write the return objective statement. (What are the goals client needs the investment return to fulfil)
Then do the calculations and provide the after/pre tax return required to meet those objectives. - Including what is the net investment base (investable less any amount that requires to be set aside for immediate needs) - What is the net annual expenses (expenses less any after tax income) - Include inflation in calculation when applicable.