QUESTIONS 7, 8, AND 9, INCLUDING GUIDELINE ANSWERS, 2001 CFA LEVEL...

2. Questions 7, 8, and 9, including Guideline Answers, 2001 CFA Level III Examination,

reprinted in Exams and Guideline Answers, 2001, 2002, and 2003 (AIMR, 2003)

Purpose:

To test the candidate’s ability to determine an appropriate strategic asset allocation for an

individual investor.

LOS: The candidate should be able to

1B. “Managing Individual Investor Portfolios” (Study Session 9)

p) compare and contrast Monte Carlo approaches to traditional deterministic approaches

for retirement planning;

q) discuss the advantages of the Monte Carlo approach to retirement planning.