Schweser 2009 Practice Exam V2 Exam 2 Q10 A

Can anyone advise why the value of DC plan is not included in its investable assets when the return objective is calculated (only 7.875M of Destiny stock is accounted for) ?

Just done that exam this morning. I also included the DC value, but I assume you mustn’t because they specifically ask for the taxable portfolio return objective, which implies his personal assets only - he has not yet retired so he has no access to assets in his DC plan. I felt the whole exam was so vague. I got 34% or so…just completely misinterpreted what Schweser was alsing for. Nevermind the question where they are missing a stack of information (the college endowment and the atheltics facility? wtf?)

Oh, yes. We must read very carefully on the exam and this may cost a lot of time while it is easy to make mistakes not only in Schweser’s practice exam but also in CFAI’s real AM exam.