The text discusses inputs managers might use to determine fair values of assets and liabilities and identifies different classifications of assets identified in sfas no. 157. suppose a major university endowment has investments in a wide array of assets, including (a) common stocks; (b) bonds; (c) real estate; (d) timber investments, which receive cash flows from sales of timber, private equity funds, and illiquid asset-backed securities. consider how the portfolio manager would estimate the fair values of each of those classes of assets, and characterize the inputs you identify as level 1, level 2, or level 3.