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Exam 3 AM - Confusion (spoiler alert)
Is anyone else finding these morning exams incredibly confusing?!?
Question 1:
It almost completely ignores the fact that she has lost her job. Why is it incorrect to assume that this lowers risk tolerance, increases liquidity requirements, is included in timespan etc?!?!?
Question 2:
When working out the PV of future spending requirments why do we ignore inflation? The EOC question on this is almost exactly the same except that it incorporates it. Is it just because they mention they wish to maintain the spending at $150k rather than a real value of $150k?
Ive only got up to question 5 tonight, but these semantics are really frustrating!
Thanks |
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