Find the correct statements

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Which of the following statements concerning target-benefit pension plans is (are) correct?

I. Although they are defined-contribution plans, they use a defined-benefit formula to determine the annual contribution.

II. The plan participant is guaranteed a specified benefit and, thus, the employer bears the risk of investment performance.

A. I only

B. II only

C. Both I and II

D. Neither I nor II

Reference no: EM1340226

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