If a client has

CFA Level III
#1

If a client has a return requirement of 5 percent plus management fees of 1.5 percent. And your doing AO. Wouldn’t your return requirement be 1.05*1.015=6.575%. if not why would it only be 5 percent?

#2

good question

#3

which question is this?

#4

Hypothetically speaking from our understanding of the CFAI text. Would it be possible to not include the management fee in a return requirement if you were doing an AO portfolio? Or should both be taken in context even if it would cause the portfolio to take on risk in excess of the client’s maximum allowed?

#5

8.7+0.8=9.4 if that’s what you’re getting at for that particular client

#6

I heard that both methods are allowed… (1.087)(1.007)= 9.46 or 8.7% plus 0.7%= 9.40% (Specifically when they said “plus”) any one has idea ??

#7

The only one that worked for the question was adding.