R26 Q19 CFAI forgot to include Inflation in R(r)?
Book 3, Reading 26, Page 337, Question 19
Question states that the foundation has an annual spending requirement of 5%
"Annual spending must at least meet the 5% of market value requirement, but the committee is unsure how much higher spending can or should be. The committee wants to pay out as much as possible because of the critical nature of the research bing funded; however, it understands that preserving the real value of the foundation's assets is equally important in order to preserve its future grand-making capabilities."
Then, in the chart forecasted inflation is 3.5%.
Thus... shouldn't R(r) = 8.5%? Yet in the answer, CFAI uses an "Expected Real Return of 5.805%" as an acceptable answer. Anyone else notice this? |
发表于 2011-7-13 16:24
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