2016 Morning Exam - Question 6C

CFA Level III Portfolio Management
#1

Hey All,

Can someone help me understand why the CFA requires monthly cash flows for calculating the required return of the Mattison family in question 6C of the 2016 morning exam. The approach is obviously correct, but I’m just a little confused as to how we are supposed to know that we should look at the cash flows from a monthly perspective as opposed to annual (as the information is presented).

Thanks!

#2

“Note: Assume all cash flows occur at month-end”.

#3

As I know this monthly requirement appeared only in 2016. Maybe it is new trend.

#4

*Face Palm*

Thanks Krok!