Problem on return in retirement to meet the expenses


Problem: A client requires a 5% real rate of her return in retirement to meet her expenses. She achieved an 8% nominal rate of return on her portfolio when the market returned 5% and inflation was 3%. Which statement is correct? She exceeded her targeted nominal rate of return. Her return was less than her nominal target rate required. Cannot be determined because the standard deviation is unknown. She achieved her targeted nominal rate of return.

 

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Problem on return in retirement to meet the expenses
Reference No:- TGS03417930

Expected delivery within 24 Hours