题干：
Hoven University (HU) has asked Greenhill to manage the university’s endowment. The endowment’s spending rule dictates that it make an annual contribution of 4% of its year-end portfolio market value to support HU’s operating budget. The annual endowment contribution represents 25% of HU’s annual operating budget. The university’s operating expenses are expected to grow at a rate of 2.5% annually, and the rate of inflation in the economy is expected to be 1% a year. Investment management expenses are estimated to be 0.65% of the endowment’s market value. The investment committee has asked Zubov to present his views on the risk and return objectives and liquidity constraints for the endowment. Zubov responds with the following statements:
§ Based on the information provided, an annual total return objective in the range of 7% to 7.5% would be appropriate for the fund.
§ To meet the endowment’s spending needs for this year, the liquidity need is in the range of 4.5% to 5% of the year-end portfolio value.
§ Given the return objective and liquidity needs, the endowment’s risk tolerance is high.
官方答案解析：
B is incorrect because Zubov is correct about the return objective. The return objective = spending rule + growth in operating expenses + investment management expenses: 7.15% = 4% + 2.5% + 0.65%.
Or using a geometric approach, 7.3% = (1.04)(1.025)(1.0065) − 1
So, the return is in the range 7% to 7.5%.
C is incorrect because Zubov is correct about the liquidity need. The liquidity need = spending rule + investment management expenses: 4.65% = 4% + 0.65%.
Using a geometric approach, 4.7% = (1.04)(1.0065) − 1
So, the liquidity need is in the range 4.5% to 5%.
为什么答案里计算return objective时没有加上inflation呢？
