Endowments/Foundations -> Risk Aversion?

Just got a question wrong on this… I figured that they’re typically risk-averse, with the idea that they often have large set annual payments (scholarships, for example) and irregular income. Am I under-thinking this? PS, word to the wise: don’t get your printable exams mixed up. seeing “20%” on your results screen kills your confidence, even if it is corrected within a few minutes.

i want to say they’re ok with risk b/c they’ve got longer time horizens. they’ve got a tax exempt status also- not sure that it’d play much into the risk measurement though.

F & E’s are typically risk seekers… They tend to have more lenient investment policies and larger allocations to hedge funds and alternative investments. Just think of big university endowments, like Yale or Harvard…