文档介绍：: .
打印者:Xiaohang Zeng <******@qtted to the budgetary support of the college for the coming year. At the end of
the prior year, the market value of the Wilson-Fowler Endowment’s assets stood at $75,000,000.
In addition, the Wilson-Fowler Endowment has committed to contribute $1,000,000 in the
coming year to the construction of a new student dormitory. Planners at the endowment expect
the endowment to receive contributions or gifts (from alumni and other sources) of $400,000
over the coming year. What is the anticipated liquidity requirement of the Wilson-Fowler
Endowment for the coming year?
2. The Executive Director of the Judd University Endowment estimates that the capital markets will
provide a 9 percent expected return for an endowment portfolio taking above-average risk, and a 7
percent expected return for an endowment portfolio taking average risk. The Judd Endowment provides
tuition scholarships for Judd University students. The spending rate has been 4 percent, and the
expected tuition inflation rate is 3 percent. Recently university officials have pressured the endowment
to increase the spending rate to 6 percent. The endowment has an average to below-average ability to
accept risk and only an average willingness to take risk, but a university official claims that the risk
tolerance should be raised because higher returns are needed. Discuss an appropriate return objective
and risk tolerance for the Judd Endowment.
3. Stux (1994) describes a country allocation strategy across five major equity markets: the United States,
the United Kingdom, Germany, France, and Japan. In this strategy, a measure of relative attractiveness
among the five equity markets is used as a factor in determining the weights of