You are being interviewed for a job as a portfolio manager at an investment counseling partnership. As part of the interview, you are asked to demonstrate your ability to develop investment portfolio policy statements for the clients listed below:

a) A pension fund that is described as a mature defined benefit plan, with the workforce having an average age of 54, no unfunded pension liabilities, and wage cost increase forecast at 5% annually.

b) A university endowment fund tha is described as conservative, with investment returns being utilized along with gifts and donations received to meet current expenses, the spending rate is 5% per year, and inflation costs is expected at 3% annually.

c) A life insurance company tha is described as specializing in annuities; policy premium rates are based on a minimum annual accumulation rate of 7% in the first year of the policy and a 4% minimum annual accumulation rate in the next five years.