You have been named as investment advisers to a foundation established by Dr. Peter Maphosa with an original contribution consisting entirely of the common stock of Medico. Inc. Founded by Dr Maphosa, Medico manufactures and markets medical devices invented by the doctor and collects royalties on other patented innovations. All of the shares which made up the initial contribution to the foundation were sold at a public offering of Medico common stock and the R5 billion proceeds will be delivered to the foundation within the next week. At the same time, Mrs Maphosa will receive R5 billion in proceeds from the sale of her stock in Medico. Dr Maphosas purpose in establishing the Maphosa Foundation was to offset the effect of inflation on medical school tuition for the maximum number of worthy students. QUESTION 1 [30 Marks] You are preparing for a meeting with the foundation trustees to discuss investment policy and asset allocation. a) Define and give (three) examples of each that show the differences between an investment objective, and investment constraints, and investment policy. (12 Marks) b) Identify and describe an appropriate investment objective and a set of investment constraints for the Maphosa foundation. (4 Marks) c) Based on the investment objective and constraints identified in part b, prepare a comprehensive investment policy statement for the Maphosa Foundation to be recommended for adoption by the trustees. (14 Marks) The statement of Investment Policy should include the following headings an Executive Summary, Objectives, Portfolio Selection Guidelines and Financial A