Medfield College's $10 Million Endowment Fund Is Not Allowed to Spend

question 30

Multiple Choice

Medfield College's $10 million endowment fund is not allowed to spend any contributed capital or any capital gains. The fund may only spend investment earnings. The fund is expected to need between $500 000 and $1 000 000 to pay for new lab equipment for the science building. Which of the following is/are true?
i. The fund should have a target rate of return of at least 10%. II. The limitations on spending require the fund to limit its considerations to growth shares.
III. The requirement to spend money out of the fund this year provides a liquidity constraint that may reduce the fund's rate of return.

• A)I only
• B)II only
• C)I and III only
• D)I, II and III

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Return on Capital

A measure of a company's profitability, calculated as the profit generated by its capital investment, often expressed as a percentage.

Immigration

Establishing permanent residence in a nation other than the one where you originally belong.

Productivity

The measure of how efficiently production inputs, such as labor and capital, are converted into outputs, i.e., goods and services.

Public Assistance

Government programs designed to provide financial aid to individuals or families in need.