A Defined Contribution Retirement Plan Can Be Advantageous for an Employer

question 55

Multiple Choice

A defined contribution retirement plan can be advantageous for an employer because:

• A) the employer may take the tax advantages without funding the plan
• B) cost containment can be effective
• C) only individuals that retire will receive benefits and therefore the costs are reduced
• D) the investment risk is shifted to the employee after the contribution is made

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much values differ from the mean.

Modality

Modality in statistics refers to the number of peaks in the frequency distribution of a dataset.

Symmetry

A property where a shape or figure can be divided into parts that are exact reflections of each other on opposite sides of a line or plane.

Variance

A measure of the dispersion or spread within a set of data points, indicating the average of the squared deviations from the mean.