sept 15 - multiple choice: scenario or analysis make a...

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multiple choice: scenario or analysis make a decision (mc answer); scenario changed: what will be the recommendation to the committee, how to change the endowment; could be a budget scenario Over the weekend, Lehman Brothers may be going into bankruptcy and Merrill Lynch may be bought by Bank of America Endowments: Investment committee is responsible for the endowment: look at the financial performance of the endowments: o review monthly or quarterly returns look at investment mangers: i.e. Lehman private equity companies real estate investment fixed income: bonds o Asset allocation: how an organization allocates its financial resources among different investment targets. the old formula: 60% of endowment would be in equities (domestic stocks) 40% in fixed income (bonds) now, most firms do alternative investments 15-30%: private equity/hedge funds: not listed on the stock exchange; they don’t have to disclose as much so it’s more difficult to gain information about them (what their investments are, partners, risks): currency
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sept 15 - multiple choice: scenario or analysis make a...

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