Which of the Following Is Not an Explanation as to Why

question 4

Multiple Choice

Which of the following is not an explanation as to why many occupational pension funds moved from being in surplus to deficit over the past twenty years?

• A) Reduced regulation
• B) Stock market performance
• C) Higher taxation
• D) Increased life expectancy

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Definitions:

Dividend Yield

A ratio demonstrating the yearly dividends a company distributes in relation to its share price.

Exercise Price

The price at which an option holder can buy or sell the underlying security.

Protective Put

An options strategy wherein an investor holds a long position in a stock and buys put options on that same stock to protect against the stock's decline in price.

T-bill Rate

The yield or interest rate paid to investors of U.S. Treasury bills, a short-term government security.