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:

Answer rating: 100% (QA)

To calculate the required rate of return for North East Fellowship Universitys endowment fund we nee... View the full answer