Reading 10 Q13 Behavioural Finance CFAI Book

CFA Level III
#1

How did return requirment of 4.427% came.

#2

2nd CLR TVM

PV=-1235000 FV=2000000 N=18 PMT=26000 CPT i/Y

4.427%

#3

Salary after tax = 48000

Expenses = 74000

From portfolio = 74000-48000 = 26000

FV=$2,000,000

PV = 900,000+5,000+160,000+220,000-30,000-20,000 = 1,235,000

N=18

PMT=26,000

Calc I/Y=4.427

#4

thanks