CFA CFA Level 1 Question of the Week – Portfolio Management

Question of the Week – Portfolio Management

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    • AdaptPrep
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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
    • AdaptPrep
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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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