A Fully-Funded Pension Plan Can Invest Surplus Assets in Equities

question 21

Multiple Choice

A fully-funded pension plan can invest surplus assets in equities provided it reduces the proportion in equities when the value of the fund drops near the accumulated benefit obligation.This strategy is referred to as

• A)immunization.
• B)hedging.
• C)diversification.
• D)contingent immunization.

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Definitions:

CT Scans

Imaging procedures that use computer-processed combinations of many X-ray measurements taken from different angles to create cross-sectional images of the body.

MRIs

Magnetic Resonance Imaging, a medical imaging technique used to visualize internal structures of the body in detail.

Neuron

A specific type of cell that sends nerve signals; known as a neuron.

Neural Communication

The process by which neurons transmit information through electrical and chemical signals across synapses.