PORTFOLIO

chandniwadhwani92
Finance Junkie
Posts: 166
Joined: Mon Oct 06, 2014 7:36 am

PORTFOLIO

Postby chandniwadhwani92 » Mon Feb 23, 2015 3:04 pm

RETURN OF 3% MORE THAN ANNUAL INFLATION RATE EACH YEAR

MY Qqestion

This return should be relative risk objective as inflation is benchmarK stated ver here

BUT IN SCHWESER IT IS GIVEN IN ABSOLUTE RISK OBJECTIVE STATED IN REAL TERM

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

PORTFOLIO

Postby edupristine » Wed Feb 25, 2015 7:31 am

Hi, relative risk objective is how much loss can investor can bear in terms of a benchmark. In the example above inflation is not a benchmark. In the example above investor wants return of 3% above the inflation.


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