State the 4 approaches to balancing shortfall risk and final portfolio value. If you define them, you get a free t-shirt with 3 wolves!
1 - Absolute Performance (desired min. spending req’t) 2 - Cash Flow Matching (laddered bond strategy to meet CF needs) 3 - Asset Allocation (monte carlo plotting expected final value and probability of shortfall) 4 - Fixed Planning Horizon / Insured Portfolio (zero-coupon RF bonds for min. spend - remainder in risky assets) Disclosure: I looked most of that up.