2007 Exam question 5 CU endowment

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shoiho's picture

in the answer key for Part B, the calculated CU market value growth as stated in the answer key is 0.5%. How did they come up with this?

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krishna1's picture

Beg MV at 92 : 490Mn

2006 MV : 500

find out comp growth

bigwilly's picture

2003: +8.16%
2004: -6.60%
2005: 11.11%
2006: -9.09%
Annlzd: +0.51%

shoiho's picture

got it. Thanks!

TooOld4This's picture

Didn’t really agree with the conclusion here. So performance wasn’t so great last couple of years. Why does that affect the risk tolerance for the future? It’s not like the fund is down 50% or something, and it’s only 5% of the total budget!

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