Question
North East Fellowship University's endowment fund has $20 million in assets. The fund has a targeted spending rate of 4.50%. The fund has been incurring
North East Fellowship University's endowment fund has $20 million in assets. The fund has a targeted spending rate of 4.50%. The fund has been incurring 0.75% as management costs. The trustees would like to preserve the purchasing power of the fund and curtail the risk in terms of standard deviation to no more than 10%. Inflation expectation is 2% per year over the foreseeable future.
The fund's required rate of return is closest to:
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Government and Not for Profit Accounting Concepts and Practices
Authors: Michael H. Granof, Saleha B. Khumawala
6th edition
978-1-119-4958, 9781118473047, 1118155971, 1118473043, 978-1118155974
