Principles of asset allocation

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?


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?

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

Scratch that… I got it.

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

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

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