15 1020000 she also holds 75000 in balanced mutual

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€1,200,000 × (1 − 0.15) = €1,020,000. She also holds €75,000 in balanced mutual funds and €25,000 in a money market fund. Charmie intends to reevaluate her policy statement and asset allocation guidelines every three years. 1 Discuss Charmie’s liquidity requirements. 1 Determine Charmie’s return requirement and evaluate whether her portfolio can be expected to satisfy that requirement if inflation averages 3 percent annually and she reduces her annual living expenses to €100,000 by combining her apartment and studio. 1 Explain why an analysis of Charmie’s investment policy statement might become necessary before the next three-year review. Hans’ increasingly irresponsible lifestyle has become a burden to his parents. Hans was recently arrested for reckless driving—he crashed his car into a restaurant, causing considerable damage and injuring a patron. As a result of Hans’ behavior, Pramod has placed him on probationary leave of absence from SahaMarine but will allow him to retain his annual salary of €100,000. The restaurant patron is suing Hans for €700,000 in damages, and the restaurant owner estimates that it will take €500,000 to repair damages to his building. Hans’ insurance will cover costs to a maximum of only €200,000.
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  • Summer '10
  • jennypaul
  • Pramod

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