Defined benefit pension plan ability

Assignment Help Financial Management

Reference no: EM132063309

1. Which of the following factors would increase a US Defined Benefit Pension plan’s ability to take more risk when allocating plan assets?

I. A provision for early retirement is added to the plan

II. The correlation between company profits and equity market performance becomes stronger

III. The baby boomer generation increases the average age of the workforce

A. I

B. II

C. III

D. II,III

E. None of the statements

2. Which of the following statements about pensions over time is (are) TRUE?

I. The return requirement and discount rate for plan assets have both been decreasing

II. In terms to total AUM, the popularity of DB plans have been declining relative to DC plans

III. Allocation to alternative investments has been increasing

A. I

B. II

C. I,III

D. II,III

E. All of the statements

Reference no: EM132063309

Questions Cloud

Examples of important things that financial planning skills : Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally

Meditation on impermanence : Why do you think he said this? What does the meditation on impermanence lead us to?

What is your highest potential loss from this strategy : what are the break-even points for this strategy? What is your highest potential loss from this strategy?

Explain zero coupon bonds and adjustable rate bonds : Explain Zero coupon bonds and adjustable rate bonds, do a comparison analysis for a client of which would be practical for a client that will be retiring soon,

Defined benefit pension plan ability : Which of the following factors would increase a US Defined Benefit Pension plan’s ability to take more risk when allocating plan assets?

Risk- free securities in the united states : What is the yield on the 90- day risk- free securities in the United States?

Evaluate the underlined words in italics : Based on this information alone, you should add the new asset to the portfolio. Evaluate the underlined words in italics.

Forecasting stock market returns : When forecasting stock market returns, the Grinold-Kroner model specifically accounts for all of the following except:

Does an arbitrage opportunity exist : Suppose that the current stock price is $110, the exercise price is $100, Does an arbitrage opportunity exist?

User Account

All Pages