kant Wrote: ------------------------------------------------------- > That doesn’t make sense to me. > > gdiddy, let’s say I tell you I will give you 10 > million in 30 years. Would you give a shit right > now about things that provide little return with > the money you make? What you should do is take > your investment money and put it in crazy schemes > like making wine out of piss. If it works then > you’re a billionaire, if it doesn’t then fuck it, > who cares? You’re getting $10 million to retire > with anyway. If in year 5 you lose all your money and you still need to wait another 25 years to get that 30 mil, you’re SOL. Expenses arrive today and must be paid right away. Otherwise, most people would be investing like crazy because they expect to get a fat inheritance when their parents die.
Agreeing to gdiddy: The need to invest for portfolio growth is higher in inflationary environments and lower in countries where workers receive generous state pensions.
FOLKS, CFA exam is not correct all the time in the real world, but we need to stick to the LOS for the exam even if we don’t agree on the concept. You will be graded according to the study materials, not what supposed to be true.
so is the answer B? The feedback says the need for portfolio growth is lower in countries with generous state pensions. So this means equity requirement must be low, but does the same also go for fixed income as well?