Peter and Hilda Inger - Return Objective Calculation

CFA Level III Portfolio Management
#1

Reading 8 Managing Individual Investor Portfolio, page 173. When they calculate the return requirement, why they did not subtract the “Current Net withdraw -68,750” from the investable assets? They only add back the Year 1 positive cash inflow but did not subtract Current Net withdraw.

Anybody could help? Thank you!

#2

The Inger’s seem like nice people. Other than Hans.

#3

Anybody could answer my question?

#4

didn’t Hans wreck his sport car into a crowded restaurant? Bad!

#5

The only bad consequence was he had no adequate insurance policy.

#6

Not sure if this answers your question, but I would have to blame Peter and Hilda.