Question with Asset Allocation solutions, investment, maintain, generated

karoliukas

I am using the Elan guide and I am finding a lot of errors with their solutions but i just want to double check with AF

14. Capital preservation least likely means that investors:
A. Want to minimize their risk of loss
B. Want to supplement their earning with income generated in their portfolio
C. Seek to maintain the purchasing power of their investment

I got B but the solution manual says A

Can someone clarify it for me just to make sure? Thanks

siavosh

the only reason i would be able to come up with for A is that all rational investors want to minimize the risk of loss...i would probly have picked B myself though.

kasinkei

Its a definite error. Their solutions file implies that B defines the total return objective and is the correct answer. You can just email them or check the errata when you're unsure of something.



Edited 1 time(s). Last edit at Wednesday, October 27, 2010 at 05:54PM by beatthecfa.