Typically, the risk tolerance of endowment funds is linked to the relative importance of the fund in the sponsor’s overall budget picture. Since this endowment is a scholarship endowment, there are no operations at risk of shutting down if the fund does not meet its return objective. On the other hand, Turner has expressed that she wants 10 scholarships awarded annually. This requirement reduces the overall risk profile. Also, a 9% return requirement will necessitate higher risks |
