Question: The Fisher Foundation was established by the estate of a wealthy industrial tycoon. Its sole purpose is to provide grants to improve literacy in low-income demographics in Alabama. Its trustees are targeting a required return of 8 percent, which adds a 3 percentage point inflation adjustment on top of the 5 percent spending rule. The fund has assets totaling $75 million. The Fisher Foundation asks for assistance in developing an IIPS to guide the investment of their assets. Based on the information provided, answer the following questions:
a. What should be the foundation's risk tolerance level?
b. What is the foundation's time horizon?