Principles of asset allocation

CFA Level III
#1

Hi all,

Reading the example of goal based investments (the smiths example) the describe 4 goals to achieve with different probabilities of success. The point that does not fit to me is the PV calculated for the goal 3 and goal 4 are:

Goal 3

FV 10,000,000.00 N 10 Rate 4.10% PV -6,691,025.81 (instead of -6.71 stated in the reading)

Goal 4

FV 10,000,000.00 N 20 Rate 6.80% PV -2,682,717.52 (instead of -2.42 stated in the readiing)

Does anyone know that if there is an erratum or I am missing anything?

#2

Hi,

found the same numbers as you did, but no clue if we are missing something.

By the way, do you know how to calculate the portfolio std dev of 7.6% in Exhibit 37?

#3

Hi, I am going to sound dumb here, but can anyone explain the calculation behind Goal 1. I can’t seem to get the darn Present Value of 2.43 Mil

#4

Scratch that… I got it.

#5

Hi, were y’all able to figure out the calculation?

#6

There is a correction in the new errata as of 21 May.

Though it is not 2,682, it is closer at 2,679