North East Fellowship University's endowment fund has $20 million in assets. The fund has a targeted spending
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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:
Related Book For
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala
Posted Date: