Robert and Mary Lange

Question 1

What are some income splitting strategy

Answer 1

1. If the individual has a buisness than they could pay the spouse a reasonable salary to contribute to the buisness i.e. admin
2. Contribute to spousal RRSP
3. Higher income earner pays all the expenses, lower income earner invests their salary
4. If one spouse TFSA/RRSP is fully contributed any excess investable assets can be given to other spouse to invest
5. Lending funds at prescribed interest rate, as long as the interest is paid than attribution tules will not apply and taxable events will occur at the other persons MTR

Question 2

Sharpe Ratio

Answer 2

Sharpe Ratio: 1 yr fund return- 1 year t-bill/ standard deviation

Question 3

How to calculate Alpha (Risk-adjusted rate of return)

Answer 3

Alpha: actual rate of return- expected rate of return