IPS questions with asset allocations
1) if you are asked to choose best allocation given a return requirement, i assume that the return you use should be pretax and real, since that is how returns are presented--is that right?
2) when picking a portfolio to satisfy liquidity needs are the only instruments for our purposes that we should look at are money markets and cash (i.e. do we assume treasuries and other short term bonds provide no liquidity)? |