Student Work

 

An Analysis of University Endowment Spending Public

Downloadable Content

open in viewer

The goal of this project is to identify the best spending rule to maximize the purchasing power of a university’s endowment, while also maintaining steady yearly spending each year. An endowment is an asset owned that should support an organization in perpetuity; in the case of most universities, it is a large sum of money that is invested in various assets, and managers decide how much to spend each year. Researchers analyze rules’ performance in various financial metrics for 1,000 economic scenarios designed to replicate annual returns earned by endowments over a 50-year period. The results of this analysis suggest that universities should calculate yearly spending from their endowment using the recursive moving average spending rule, a blend of the hybrid and moving average rules.

Creator
Publisher
Identifier
  • E-project-042720-160606
Advisor
Year
  • 2020
Date created
  • 2020-04-27
Resource type
Major
Rights statement
License

Relationships

In Collection:

Items

Permanent link to this page: https://digital.wpi.edu/show/x059c9950