If a question asks you to formulate a return objective, do you need to include a numercal return objective or simply state the specific goal objectives?
In the IFT mock 1, there is a question where the client needs to support her son’s eduction and her father’s nursing home espenses. She would retire 20 years out. So this is a multi-stage horizon. I could establish a numerical return objective for the first 4 years, but there’s not enough info to move beyond that.
I thought I recalled reading that it was a requirement to state a numerical objective along with the stated objectives. In IFT’s answer, he does noyt have a numerical objective, but I wasted extra time on that question trying to compute the required return.
Any idea how this would show up on the actual exam?
What about if you’re asked to construct the objectives and constraints portion of an IPS (no specific mention to calculation), are we supposed to calculate the required return? After all, a specific return percentage should be a part of a real IPS?
For example: Reading 10, Question 11. In the solution, no calculation was required but I think that’s a little strange given that the question asks for a full out IPS.