The Cassidy Foundation is a non-profit organization to aid the homeless. The foundation has NEW assets totalling $5 million to add to OLD assets of $5 million. The Directors of the endowment anticipates a spending rate of 5%. Inflation is expected to be 3% annually. Calculate the return objective State the fund’s risk tolerance

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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  • The Cassidy Foundation is a non-profit organization to aid the homeless. The foundation has NEW assets totalling $5 million to add to OLD assets of $5 million. The Directors of the endowment anticipates a spending rate of 5%. Inflation is expected to be 3% annually.
  • Calculate the return objective
  • State the fund’s risk tolerance 

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