NPV and other criteria for Capital Budgeting

Basic measures of risk risk what are the chances i

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Unformatted text preview: as much. You would charge them more if you are rational. How should the historical data affect decision making? For a perpetual institution such as a private school, museum, or university endowment can afford to take liquidity risk (alternatives) Asset Allocation: Stocks: Large small Bonds (lowest rate of return in exchange for lower risk) Cash 1 years operations Alternatives (real estate, private equity) companies have moved towards heavy investment in this Swenson at Yale did really well when he first relied heavily on alternatives but now its not doing too well. Georgetown has traditionally been more of equal weights stocks and bonds and smaller percentage allocated to alternatives For a person about to retire? They don’t want much risk,...
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This document was uploaded on 03/27/2014 for the course FINC 150 at Georgetown.

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