Hi guys, Anyone can help to solve the following problems? 2008 essay 1: One factor to decrease the Carvalhos’ ability to take risk, the answer said: They have a moderate asset relative to required cash flows from the portfolio. Per my understanding, total investable asset=995000, their annual living cost can be covered by their salary, the only cash flows from the portfolio is the mortgage payment, amounting to 55000. The the expense/total asset ratio is only 5.53%. The asset base should be seen as large. Why the answer says it is moderate? I remebered the CFAI book said to measure the wealth size, we can not only see the abosolute value, we should consider the expense/asset ratio. 2006 essay 1: Factors to decrease Serra’s ability to take risk, the answer said: He desires to maintain the real value of the portfolio Can this be a factor to decrease the ability to take risk? I mean I have seen serveral individual investors desire to maintain the real value in individual IPS writing.(CFAI exams from 2000-2010). None of the answers ever mentioned that the desire to maintain the real value of the portfolio should be one factor to decrease the ability to take risk, except this one. I’m so confrustrated by such answers like: He could pursue a second career, He could reduce his living expenses, He could decide to increase his spening during retirement, He is at the peak of his career and earnings power. He is unlikely to be able to achieve comparable earnings power in the future. Because I think they are too subjective and no clues can be found from the article As I read one article in this forum about the grading and graders, CFAI won’t give you any points if your answer is not listed in their official answers. Since such answers listed above are too subjective, there is no guarantee that such answer will be valid each time. How can we deal with such answers? Any thoughts? Guys?