pennyless

If I saw this on a test:

"...you have say $50 mm in assets and annual expenditures of $3.5 mm, with inflation of 3%. That is a nominal after tax required return of 10%..."

I would say below average and not think twice.

If you require 10% return on portfolio, the ability is below average and the investor requires education about risk v return and reducing expenses. This scenario is the most complex because you can justify either way.

If I recall, the 2006 individual IPS question was about a retired soccer player who had a lot of money (tens of millions) but his expenses were like $2MM a year. I believe his ability was considered below average. I can rummage through my old exams to find it.