CFAI Book3, Bluebox Example 9.1C, Page 263. I know it’s too late to ask a question like this…but this example looks different. It includes the home(worth 240,000) in the asset allocation.
Question 1C asks for the new net investment in real estate.
The calculation is: 29.58%*(2,750,000-148,522) - 240,000 = 529,517. My question is: when should it include the home in the asset allocation?
(Example 9 is very long, so I can’t post the whole question.)