FYI. If you are given a future value for a desired portfolio and also given the current value, PMT, N, etc… when calculating the return, you don’t need to add back inflation!
I’m not to sure about that, the cfa 2007 morning exam q1 adds back inflation.
yeah unless it says something like “increases in living expenses will be offset by increases in salary”, i would add it back.
correct, because the future value ($ amount) given is already including inflation.
Ashwin Wrote: ------------------------------------------------------- > correct, because the future value ($ amount) given > is already including inflation. It could be, or it couldn’t be. Depends on the wording.