prashantsahni

Harish, I had many of the same questions as you since I just completed the ‘07 exam. For 1(C), see page 86 in practice exam volume 2.
Regarding the Ingram’s risk tolerance being above avg. due to a high asset base to spending needs with the real required return of 4.84%…great question, because when I review the 2008 exam the Carlvalhos’ 5.53% real required return is stated as justification for taking less risk. So, is 5% the line between more/less ability for risk?
Nailing the risk tolerance question on the exam seems simple enough, but in reality what a pain.