Consider an US-based foundation with spending rate of 3 perc…

Consider an US-based foundation with spending rate of 3 percent and cost of earning investment returns has averaged 50 basis points annually. The asset allocation and the set of capital market expectations are shown below.  The expected long-term inflation rate is 2.5 percent. Table 3 Capital Market Expectations Asset class E(ri) si Correlations A B C D A US equities 9% 18% 1       B Ex-US equities 8 14 0.60 1     C US bonds 4 8 0.30 0.20 1   D Real estate 1 7 0.50 0.40 0.10 1    Table 4 Corner portfolios Portfolio E(rp) sp Sp wi A B C D 1 9.0% 18.0% 0.39 100% 0% 0% 0% 2 7.9 16.7 0.35 65 35 0 0 3 7.5 15.4 0.38 37 53 0 10 4 5.0 12.4 0.36 0 25 43 32 5 4.6 10.1 0.32 0 11 55 34 What is the foundation return requirement in percent?

Bob hasn’t been managing his finances very well and is in ne…

Bob hasn’t been managing his finances very well and is in need of an emergency loan to pay rent. On July 10, he goes to Cash4U for a payday loan and borrows $500. Bob writes a postdated check for $555 which Cash4U will cash 6 days later on July 16. What is Bob’s APR on his $500 loan?