Institutional IPS CFAI

[confused2010]

Page 470. voulume 2 CFAI- solution to example 13.risk objectives,
endowment spending is less than 14% of annual revenues. how did they calculate it.?

 

[zshao]

endownment = 30million (book value), policy spending rate = 4.5%, annual operating budget = 10 million
30*4.5% / 10 = 13.5%