return objective in IPS question someone, question, objective, understand

pawn

Reading 14 book 2 cfai pg 155. Problem 13 return objective.

Pls someone explain how u get a pretax return of 4.427 %. I understand how u get -26k expenses. I understand portfolio value of 1235k. How do u come up with return ??

I know it's probably easy but I'm fried.

Unforseen

never mind you have to PV the damn thing.

Darien

I don't understand this either. What are you PVing?

Analti_Calte

Because you are told that they need a fixed amount of money when they retire...whenever you see a set amount that needs to be available at some point in the future (this could also apply to a specified bequest preference) PV has to be used.