AFM479 Midterm: Midterm Notes

369 views17 pages

Document Summary

Individual, collective owner (e. g. family or pension fund, mutual funds, hedge funds, Problems: manager not taking into account the investor"s risk aversion: the vast majority of stocks are owned by institutions because most people don"t invest own their own, but through delegated portfolio management. Income cash inflows can be zero in some cases, like some foundations. Impacts: redistribution of wealth away from the western world/developed economies to the. Pension funds: definition main savings mechanism for individual investors. In defined contribution plans, worker bears the risk who is less able to handle it: challenges, underfunding not enough assets to cover potential liabilities (present values of both) Foundations and endowments: payout rules (can be in form of investments), us foundations minimum 5% aum/year (tax reform act of 1969, canadian foundations minimum 3. 5% (established by cra, university endowments not constrained, but avg. Keeping up with the joneses utility: endowment allocations into pe and hedge fund alternatives have increased.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents

Related Questions