medium · FRM Part 2 Risk & Investment Management
An Endowment fund with $10bn wants a steady-state 30% allocation to Private Equity.
If simulations show the steady-state NAV per vintage averages 2.4 times the annual commitment rate, what should be the annual commitment amount?
- $1.25bn
- $7.20bn
- $3.00bn
- $0.30bn
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