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IPS - Return

page 151 of Book 2 CFAI curriculum

It shows that muellers pension income is 100K and expenses 180K (8% short) and portfolio is 1million. They have trust of 2 more million but do not wish to withdraw income or principal so hence not considered.

Now they are selecting portfolio A with 4.2% return which doesn't making sense as they at least need 8% plus inflation.

Can someone help please?

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