Residual income

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February 14, 2023 at 4:14 am #678846
ilham9089
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When using RI to see whether manager will accept new investment or not, does the RI have to be more than the RI without the new investment? Suppose it is $10000 without investment and with investment RI is $8000, therefore the manager will not accept new investment, correct?
February 14, 2023 at 4:30 pm #678894
John Moffat
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Yes, that is correct.

(Have you watched my free lectures on this? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.)
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