Formulate and justify investment policy objectives

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Reference no: EM133346167

Question: Aid to the Homeless is a nonprofit organization that provides funding throughout the Washington D.C. area to run shelters for the homeless. The Cassidy Endowment Fund provides a large portion of the Aid to the Homeless's operating budget. The endowment fund was set up by the Cassidy family as a way to leave a legacy to their father. He was a wealthy entrepreneur throughout his lifetime but suffered from dementia in old age and consequently lived out his last days wandering the streets of D.C. as a homeless person. The fund has assets totaling $5 million, and directors of the endowment anticipate a spending rate of 6%. Inflation is expected to be 3% annually. Formulate and justify investment policy objectives for the Cassidy Endowment Fund in the following three areas: I. Return objective. II. Risk tolerance. III. Time horizon.

Reference no: EM133346167

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