Al Alumni Donates $5,000,000 to Great University for a New

question 57

Multiple Choice

Al Alumni donates $5,000,000 to Great University for a new Women's Studies program.Al wants the principal to remain intact but the investment earnings can be expended to support the Women's Studies Program.This donation would be accounted for in the

• A)​Quasi-Endowment Fund.
• B)​Endowment Fund.
• C)​Term Endowment Fund.
• D)​Agency Fund.

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Definitions:

Returns

The profit or loss derived from an investment over a particular period, usually expressed as a percentage.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment by dividing the difference between the investment's return and the risk-free rate by the standard deviation of the investment's returns.

Benchmark

A standard or reference by which the performance of a security, manager, or investment portfolio can be measured.