The First Step a Pension Fund Should Take Before Beginning

question 51

Multiple Choice

The first step a pension fund should take before beginning to invest is to

• A) establish investment objectives.
• B) develop a list of investment managers with superior records to interview.
• C) establish asset allocation guidelines.
• D) decide between active and passive management.

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Definitions:

Stanley Milgram

A psychologist best known for his research on obedience to authority, which revealed how people are willing to follow orders even when it results in harming others.

Obedience

Compliance with an order, request, or law, or submission to another's authority.

Volts

The unit of measurement for electric potential difference or electromotive force, symbolizing the force that drives electrons through a conductor.

Maximum Voltage

The highest electrical potential difference a device or electrical system can safely handle or operate at.