少投risky asset

NO.PZ201805280100000401 问题如下 scuss two reasons why the proposeasset allocation is inappropriate for Titan. The proposeasset allocation for Titis not appropriate because:1 Given the shift in enrollment tren anclining nations resulting from the sanctions, Titwill likely neegreater liquity in the future because of the increaseprobability of higher outflows to support university operations. The proposeasset allocation shifts Titan’s allocation into risky assets (increases the relative equity holngs ancreases the relative bonholngs), whiwoulintrogreater uncertainty to their future value.2 Titis relatively small for the proposeaition of private equity. Access to suasset class private equity mconstrainefor smaller asset owners, suTitan, who mlathe relateinterninvestment expertise. Aitionally, the Sun-Fin Private Equity Funminimum investment level is $1 million. This level of investment in private equity woul10% of Titan’s totportfolio value. Given Titan’s clining financiposition e to clining enrollments anits resulting potentineefor liquity, private equity this minimum level of investment is not appropriate for Titan. Reason 1:Unr the environment of clining trenin enrollment anlower nations,liquty nee woulraise, thus it is not approciate to invest in private equity.Reason 2: Titan’s portfolio ha market value of $10 million whiis too small to invest in private equity, 10% of whijust satisfy the funminimum investment.

NO.PZ201805280100000401 问题如下 Mark Bor a financiaiser, workswith two university fountions, the TitState Fountion (Titan) antheForart University Fountion (Forart). He meets with eauniversityfountion investment committee annually to review funobjectives anonstraints.Titan’s portfolio ha market value of $10million. After his annumeeting with its investment committee, Bornotesthe following points:■ Titmust spen3% of its beginning-of-the-yearasset value annually to meet legobligations.■ The investment committee seeks exposureto private equity investments anrequests Bors review of the Sun-Fin PrivateEquity Funa potentinew investment.■ A recent clining trenin enrollment isexpecteto continue. This is a concern because it hleto a loss ofoperating revenue from tuition.■ Regulatory sanctions anpenalties arelikely to result in lower nations over the next five years.Borsupervises two junior analysts annstructs one to formulate new allocations for Titan. This analyst proposes theallocation presentein Exhibit 1. scuss two reasons why the proposeasset allocation is inappropriate for Titan. The proposeasset allocation for Titis not appropriate because:1 Given the shift in enrollment tren anclining nations resulting from the sanctions, Titwill likely neegreater liquity in the future because of the increaseprobability of higher outflows to support university operations. The proposeasset allocation shifts Titan’s allocation into risky assets (increases the relative equity holngs ancreases the relative bonholngs), whiwoulintrogreater uncertainty to their future value.2 Titis relatively small for the proposeaition of private equity. Access to suasset class private equity mconstrainefor smaller asset owners, suTitan, who mlathe relateinterninvestment expertise. Aitionally, the Sun-Fin Private Equity Funminimum investment level is $1 million. This level of investment in private equity woul10% of Titan’s totportfolio value. Given Titan’s clining financiposition e to clining enrollments anits resulting potentineefor liquity, private equity this minimum level of investment is not appropriate for Titan. A recent clining trenin enrollment is expecteto continue. This is a concern because it hleto a loss of operating revenue from tuition. Regulatory sanctions anpenalties are likely to result in lower nations over the next five years. All of information mentioneabove incates a higher liquity anlower risk toleranis nee However, the new allocation crease the investment grabonanincrease the private equity. It increase the portfolio risk. PE hhigher investement perioso the liquity reuqirement is nee So proposeasset allocation is inappropriate for Titan. Titan’s portfolio ha market value of $10 million. Investing 10% of the Private equity fulfill the minimum size requirement but only have 10 million of totasset is too small anmight have fficulties to acquire skilleoutsourcemanager anhave access to invest in the PE. So proposeasset allocation is inappropriate for Titan.

NO.PZ201805280100000401 问题如下 scuss two reasons why the proposeasset allocation is inappropriate for Titan. The proposeasset allocation for Titis not appropriate because:1 Given the shift in enrollment tren anclining nations resulting from the sanctions, Titwill likely neegreater liquity in the future because of the increaseprobability of higher outflows to support university operations. The proposeasset allocation shifts Titan’s allocation into risky assets (increases the relative equity holngs ancreases the relative bonholngs), whiwoulintrogreater uncertainty to their future value.2 Titis relatively small for the proposeaition of private equity. Access to suasset class private equity mconstrainefor smaller asset owners, suTitan, who mlathe relateinterninvestment expertise. Aitionally, the Sun-Fin Private Equity Funminimum investment level is $1 million. This level of investment in private equity woul10% of Titan’s totportfolio value. Given Titan’s clining financiposition e to clining enrollments anits resulting potentineefor liquity, private equity this minimum level of investment is not appropriate for Titan. The percent private equity funis high for a small asset size enwment.Anwith falling operating revenue from tuition, the enwment nee more liquity to funthe spenng.

NO.PZ201805280100000401 问题如下 Mark Bor a financiaiser, workswith two university fountions, the TitState Fountion (Titan) antheForart University Fountion (Forart). He meets with eauniversityfountion investment committee annually to review funobjectives anonstraints.Titan’s portfolio ha market value of $10million. After his annumeeting with its investment committee, Bornotesthe following points:■ Titmust spen3% of its beginning-of-the-yearasset value annually to meet legobligations.■ The investment committee seeks exposureto private equity investments anrequests Bors review of the Sun-Fin PrivateEquity Funa potentinew investment.■ A recent clining trenin enrollment isexpecteto continue. This is a concern because it hleto a loss ofoperating revenue from tuition.■ Regulatory sanctions anpenalties arelikely to result in lower nations over the next five years.Borsupervises two junior analysts annstructs one to formulate new allocations for Titan. This analyst proposes theallocation presentein Exhibit 1. scuss two reasons why the proposeasset allocation is inappropriate for Titan. The proposeasset allocation for Titis not appropriate because:1 Given the shift in enrollment tren anclining nations resulting from the sanctions, Titwill likely neegreater liquity in the future because of the increaseprobability of higher outflows to support university operations. The proposeasset allocation shifts Titan’s allocation into risky assets (increases the relative equity holngs ancreases the relative bonholngs), whiwoulintrogreater uncertainty to their future value.2 Titis relatively small for the proposeaition of private equity. Access to suasset class private equity mconstrainefor smaller asset owners, suTitan, who mlathe relateinterninvestment expertise. Aitionally, the Sun-Fin Private Equity Funminimum investment level is $1 million. This level of investment in private equity woul10% of Titan’s totportfolio value. Given Titan’s clining financiposition e to clining enrollments anits resulting potentineefor liquity, private equity this minimum level of investment is not appropriate for Titan. Liquity anvolatility consiration. A recent clining trenin enrollment is expecteto continue. This is a concern because it hleto a loss of operating revenue from tuition. Regulatory sanctions anpenalties are likely to result in lower nations over the next five years. All of those signincate the future contribution woulcrease so higher liquity anlower volatility is nee However, Titincreaseits allocation to PE funancreaseallocation to Equity funanbon. It woulbring lower liquity anhigher risk. It woulinappropriate. Titis a small fountion whihtotasset of $10 million. Susmall asset size woulhave lower alternative asset investment professions anit is harto have resourof outsi managers. Titallocate 10% of asset to PE fun It woulinappropriate.