your opinion on this pe question exceeding, allocation, foundation

ikoreaii

so. i screwed up.. in the am session regarding the p. equity allocation in the foundation.. i made a dumb error and calculated 2.5% and not 25% of the foundation. but the question asked for 2 reasons why it wouldn’t be appropriate for the foundation so i gave it to them anyway.
1. 2.5% is too much because they couldn’t get enough diversification of 5-7 p equity funds without exceeding the 5% limit.. (wrong, i can accept it, i made a wrong calculation.)
2. 5 years is too long of a lockup.
my question is on my answer to 2.. can a brother get credit for 2, even if my calcuation was wrong on 1?

burning0spear

I would think so. Because the lockup limits liquidity which is necessary for the foundation.
I think your #2 is just fine.
And JDV had once said that even if you screw up the first part, you will get credit for the 2nd part if it’s correct.

leonardus

refer to fantastic post a few days ago compiling all JDV comments–bottom line “heaping spoonfuls of partial credit”–didn’t seem like based on his comments that CFAI graders are inthe business of boning you because you made a calculation error…sleep well grasshopper.

genuinecfa

I think there is no doubt that you will get credit for #2.

thommo77

i mentioned that there was not a experienced investment staff to handle the due diligence required