CFA CFA Level 1 Question of the Week – Portfolio Management

Question of the Week – Portfolio Management

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    • Avatar of AdaptPrepAdaptPrep
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        Which of the following would most accurately describe the investment needs of an endowment?

        • Accumulate capital over the next 30 years to be payable for an uncertain
          number of future years
        • Provide an inflation-adjusted amount, payable for the next 50 years
        • Grow the assets over a long term, with varying inflows and outflows each
          year
      • Avatar of AdaptPrepAdaptPrep
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          Each of these investment needs corresponds to a specific
          type of investor:

          Individual investor:
          Accumulate capital over the next 30 years to be payable for an uncertain number
          of future years

          Endowment: Provide
          an inflation-adjusted amount, payable for the next 50 years

          Defined benefit plan:
          Grow the assets over a long term, with varying inflows and outflows each year

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