Jarvis University $($JU$)$ is a private, multiprogram U$.$S$.$ university with a $$2$ billion endowment fund as of fiscal year$-$end May $31,2030.$ With little government support, JU is heavily dependent on its endowment fund to support ongoing expenditures, especially because the university's enrollment growth and tuition revenue have not met expectations in recent years. The endowment fund must make a $$126$ million annual contribution, which is indexed to inflation, to JU's general operating budget. The U$.$S$.$ Consumer Price Index is expected to rise $2\mathrm{.}5\%$ annually and the U$.$S$.$ higher education cost index is anticipated to rise $3\%$ annually. The endowment has also budgeted $$200$ million due on January $31,2031,$ representing the final payment for construction of a new main library.

In a recent capital campaign, JU only met its fund$-$raising goal with the help of one very successful alumna, Valerie Bremner, who donated $$400$ million of Bertocchi Oil and Gas common stock at fiscal year$-$end May $31,2030.$ Bertocchi Oil and Gas is a large$-$capitalization, publicly traded U$.$S$.$ company. Bremner donated the stock on the condition that no more than $25\%$ of the initial number of shares may be sold in any fiscal year. No substantial additional donations are expected in the future.

Given the large contribution to and distributions from the endowment fund, the endowment fund's investment committee has decided to revise the fund's investment policy statement. The investment committee also recognizes that a revised asset allocation may be warranted. The asset allocation in place for the JU endowment fund as of May $31,2030,$ is given in Table $28$E$.$

a$.$ Prepare the components of an appropriate investment policy statement for the Jarvis University endowment fund as of June $1,2030,$ based only on the information given.

Note: Each component in your response must specifically address circumstances of the JU endowment fund.

b$.$ Determine the most appropriate revised allocation percentage for each asset in Table $28$E as of June $1,2030.$ Justify each revised allocation percentage.

$\backslash$table$[[,\backslash$table$[[$Current$],[$Allocation$],[$Asset$]],\backslash$table$[[$Current$],[$Allocation$],[$Percentage$]],\backslash$table$[[$Current$],[$Yield$]],\backslash$table$[[$Expected$],[$Annual$],[$Return$]],\backslash$table$[[$Standard$],[$Deviation$],[$of Returns$]]],[$U$.$S$.$ money market bond fund,$$40,2\%,4\mathrm{.}0\%,4\mathrm{.}0\%,2\mathrm{.}0\%$