This case is of managerial dilemmas faced by the Treasurer of South Carolina in 1998. Until last year, the South Carolina state pension fund (more than $ 17 billion in assets) was banned by the state constitution from investing in stocks. After the constitution was amended, the state government had to decide how much to invest in stocks and which assets to choose from. Use of domestic and international data, the concept of standard deviation, correlation, covariance, diversification and risk are introduced. In addition, it looks at the equity premium from the global settings. This event covers two days, and will be used at the beginning of risk and return module, immediately before the CAPM.The State of South Carolina Case Solution
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by Randolph B. Cohen, Mark Mitchell Source: Harvard Business School 31 pages. Publication Date: November 7, 2000. Prod. #: Two hundred and one thousand and sixty-one-PDF-ENG
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