This book is one of a series of projects developed to increase understanding of the management of educational endowment funds. Specifics of performance measurement and the setting of objectives are emphasized. Part one deals with measurement of the rate of return, or profitability, of an endowment fund. Part two reviews some statistical measures that may be taken to represent risk in a portfolio. Part three considers the practical problem of using all of these measures to judge past performance and to set objectives for the future. Appendices include related material. (MJM)