Required returns, Liquidity constraints 2020 curriculum


Wanted to ask if I see this correctly. In the past exams tons of questions have been asked about those topics (especially 2008-2015) starting with “Prepare the liquidity constraint for”, “Prepare the return objectives portion of”. Now, there are two ways the ask this: Simply formulating in broad language and calculate the required return, liquidity constraints.

The broad language part I’ve seen in the 2020 curriculum. However, have not seen liquidity constraints and required returns for individuals (some short calucations for foundations etc). Am I correct, that this specific calculations are no longer covered in the 2020 curriculum and are more covered in a broader context. Because going through old exams I usually do the higher / lower risk tolerance / ability questions but skip the specific calculations questions.

Many thanks!

You are correct: calculation of the return requirement for individuals was removed from the Level III curriculum in the 2020 purge.


Thanks a lot. Long live the purge! Than I will focus my attention on the more qualitative questions in that subtopic. Cheers!

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