Does anyone have a suggestion for what it means when a Feldblum IRR problem states "supporting capital can be invested at X% per annum?"
The reason I ask, is because I have seen accepted CAS responses allow supporting capital to be either only Surplus that earns investment income, OR it can be total assets that earn investment income.
Anyone have a recommendation about what to do come exam time when you see this verbiage? I didn't see anything in the 2015 graders report relating to this when looking at problem 19, which was frustrating.
Kind Regards,
Gareth Keenan
The reason I ask, is because I have seen accepted CAS responses allow supporting capital to be either only Surplus that earns investment income, OR it can be total assets that earn investment income.
Anyone have a recommendation about what to do come exam time when you see this verbiage? I didn't see anything in the 2015 graders report relating to this when looking at problem 19, which was frustrating.
Kind Regards,
Gareth Keenan
IRR "Supporting Capital can be invested at'