I found open questions on IPS confusing, as I don’t understand how long and detailed the exact answer should be.
For example: “Draft the investment objectives section of the IPS of the Ivy University Endowment.”
How much writing is enough to answer this?
I could write one line (“Ivy University Endowment goal is to maintain real value of assets, cover 25% of University annual budget while achieving a total return of 5% plus expected inflation”).
Or I could write a lot more and in a nicer, more professional style.
What you wrote is pretty good, but you need to include @imthekingoftheworld’s suggestion. If university budgets grow at a different (likely faster) rate than overall inflation, make sure that you include that.
Note in particular that you don’t need to calculate the required rate of return unless they specifically tell you to calculate it; formulate and prepare mean write your answer in words.
Definitely great advice here from S2000magician…plus the earlier comment about how many minutes allotted, as that will drive some of your thinking and thoroughness. I sounds obvious, but the key words dictate what the grader will be looking for. It gets real stressful during the exam, so pause and zero in on what is actually being asked via the key words.