CFA三级十年真题 (2008-2017)：level_III_essay_guideline_ans_2009.docx

Question:1Topic:PortfolioManagement-IndividualMinutes:26Questions1and2relatetoPatriciaandAlexanderTracy.Atotalof35minutesisallocatedtothesequestions.Candidatesshouldanswerthesequestions加theorderpresented.QUESTION1HASFOURPARTS(A,B,C,D)FORATOTALOF26MINUTES.PatriciaandAlexanderTracy,bothage59,areresidentsofCanada.Theyhavetwinsonswhowillenterafour-yearuniversityprograminoneyear.Patriciaisalong-timeemployeeofatelecommunicationscompany.Alexanderisaself-employedsalesconsultant.Alexander'sannualincomeisnowsteadyafteryearsofextremehighsandlows.TheTracyshavebuiltaninvestmentportfoliothroughsavinginAlexander'shighincomeyears.TheTracys,currentannualincomeisequaltotheirtotalexpenses;asaresult,theycannotaddtosavingscurrently.Theyexpectthatboththeirexpensesandincomewillgrowattheinflationrate.Allmedicalcosts,nowandinthefuture,arefullycoveredthroughgovernmentprograms.TheTracysworryaboutwhethertheyhavesavedenoughforretirement,andwhethertheywillbeabletomaintaintherealvalueoftheirportfolio.Inflationisexpectedtoaverage4%fortheforeseeablefuture.TheTracyshaveapproachedDancnBriscoctohelpthemanalyzetheirinvestmentstrategyandretirementchoices.TheTracysdisagreeabouttheappropriateinvestmentstrategy.Patriciaprefersnotlosingmoneyovermakingahighreturn.Thisispartlyaresultofcontinuingregretforalossexperiencedinanequitymutualfundseveralyearsago.Alexander'shistoryofmakingfrequentchangesintheirportfoliogreatlyannoyedPatricia.ShethinksAlexanderfocusedonlyonpotentialreturnandpaidlittleattentiontorisk.TheTracyscurrentlyhavealltheirassetsininflation-indexed,short-tenbondsthatareexpectedtocontinuetoearnareturnthatwouldmatchtheinflationrateaftertaxes.Afterretirement,theyarewillingtoconsiderchangingtheirinvestmentstrategyifnecessarytomaintaintheirlifestyle.TheTracysarceligibletoretirenextyearatage60.Iftheydo,Patriciawillreceiveannualpaymentsfromhercotnpany,sdefined-benefitpensionplanandbothPatriciaandAlexanderwillreceivepaymentsfromtheCanadiangovernmentpensionplan.Alexanderdoesnotparticipateinanycompanyorindividualretirementplan.BriscoehascompiledfinancialdataandmarketexpectationsfortheTracys,retirement,showninExhibit1.Currently,BriscoeestimatesthattheTracys,investmentportfoliowillgrowto1,100,000Canadiandollars(CAD)bytheirretirementdatenextyear.Question:Topic:Minutes:1PortfolioManagement-Individual26Exhibit1FinancialDataandMarketExpectationsPatriciaandAlexanderTracyRetirementatAge60(2010)ExpectedannualexpensesCAD125,000Annualpensionincome(after-tax)Patricia'scompanyplanCAD40,000CombinedgovernmentpensionCAD40,000TotalannualpensionincomeCAD80,000Expectedannualinflation4.0%Expectedannualafter-taxportfolioreturn4.0%PensionincomefrombothPatricia,scompanyplanandthegovernmentpensionplanisfullyindexedforinflation.Briscocexpectsataxrateof20%toapplytotheTracys,withdrawalsfromtheinvestmentaccount.TheTracysexpecttoearnnoemploymentincomeafterretirement.TheTracys,residenceisnotconsideredpartoftheirinvestableassets.TheTracyshavetheoptiontodelayretirementuntilage65.TheTracysintendtoretiretogether,whetheritisin2010atage60orin2015atage65.BriscoedeterminesthatiftheTracysretireatage60,theirrisktoleranceisbelowaverage.Iftheyretireatage60,theyplantopayofftheirmortgageandassociatedtaxesbywithdrawingCAD100,000fromtheirportfoliouponretirement.AnotherconsiderationfortheTracysrelatestofundinguniversityexpensesfortheirsons.IftheTracysretireatage60,eachsonwillreceiveascholarshipavailabletoretireefamiliesfromPatricia,scompanythatwillcoveralluniversitycosts.IftheTracysretireatage65,allpensionincomewouldincreaseandwouldalmostmeettheirannualspendingneeds.Iftheyretireatage65,theTracyswouldpayalluniversityexpensesfromtheirinvestmentportfoliothroughanarrangementwiththeuniversity.Thearrangement,coveringbothsons,wouldrequiretheTracystomakeasinglepaymentofCAD200,000atage60.Question:1Topic:PortfolioManagement-IndividualMinutes:26A.i.PreparethereturnobjectivesportionoftheTracys,investmentpolicystatement(IPS)thatwillapplyiftheyretireatage60.ii.Calculatethepre-taxnominalrateofreturnthatisrequiredfortheTracys,firstyearofretirementiftheyretireatage60.Showyourcalculations*(12minutes)B.IndicatespecificfactorsfortheTracys,foreachofthefollowing,whichsupportBriscoe,sconclusionthattheTracys,risktoleranceisbelowaverage:i.Abilitytotakerisk.Indicatehwfactors.ii.Willingnesstotakerisk.Indicateonefactor.(6minutes)C.Preparethecurrent(2009)liquidityconstraintfortheTracys,IPS:i.iftheyretireatage60.ii.iftheyretireatage65.(4minutes)D.Preparethecurrent(2009)timehorizonconstraintfortheTracys,IPS:i.iftheyretireatage60.ii.iftheyretireatage65.(4minutes)Question:1Topic:PortfolioManagement-IndividualMinutes:26ReadingReferences:8.uFrameDependence:TheSecondThemejCh.3,BeyondGreedandFear:UnderstandingBehavioralFinanceandthePsychology'ofInvesting,HershShefrin(OxfordUniversitySchoolPress,2002)14."ManagingIndividualInvestorPortfblios,''ManagingInvestfnentPortfolios:ADynamicProcess