Publications
Publications
- November 2000 (Revised May 2001)
- HBS Case Collection
State of South Carolina, The
Abstract
This case presents the managerial dilemma faced by the treasurer of South Carolina in 1998. Until last year, the South Carolina state pension fund (with over $17 billion in assets) was barred by the state constitution from investing in equities. After the constitution was amended, the state government had to decide how much to invest in equities and what assets to choose. Using domestic and international data, the concepts of standard deviation, correlation, covariance, diversification, and risk are introduced. Additionally the case looks at the equity premium from a global setting. This case covers two days and will be used early in the Risk and Return module, just before the introduction of the CAPM.
Keywords
Risk and Uncertainty; Capital Markets; Investment Return; Public Administration Industry; South Carolina
Citation
Cohen, Randolph B., and Mark L. Mitchell. "State of South Carolina, The." Harvard Business School Case 201-061, November 2000. (Revised May 2001.)
About The Author
