I hate these subjective questions. Like for instance it asks if 4.5 liquidity requirement is low, moderate, high or very high. I mean at what rate does it go from low to moderate? I completely thought this had to be moderate, Schweser says low.
I guess it ‘depends’ on the portfolio…If most of the 4.5% liquidity can be met with Income from Fixed Income or dividends then it would be considered low…but maybe if its an all equity portfolio and it would have to be met with selling stocks then it might be considered moderate…don’t know though. It would be nice if they gave us a range or something…
low if it is pretax requirement
CSK then when does it go to moderate? I figured low would be 1 or 2 but I guess that would be considered very low.
s23dino, i dont know but think about it 4% pretax? whats the average yield on T-bonds? I mean lowest for 30 was like what? 4.8 or something ( might be wrong here),
Yeah so if its say 6% for 30 year, and you have a 40% FI, thats 2.4% of the 4.5% requirement, plus you can probably get anotehr 2% in dividends so you are close to the 4.5% just through income…
Ok yea i guess it makes sense but I guess the point I was trying to get across that there are no hard and fast rules. Like when the hell does it go from low to moderate, it’s all relative on how you define low and moderate. Anyhow thanks.