One Incorrect Belief That Is Often Cited as a Reason

question 8

Multiple Choice

One incorrect belief that is often cited as a reason for fully-funded pension funds to invest in equities is

• A) stocks have higher risk.
• B) bonds have lower returns.
• C) stocks provide a hedge against inflation.
• D) stocks have higher returns.
• E) All of the options are incorrect beliefs that are often cited.

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Definitions:

Mission Statement

A formal summary of the aims and values of a company, organization, or individual, guiding its strategies and decision-making.

Idealistic

Characterized by the pursuit of high or noble principles, often unrealistically aiming for perfection.

Fact-based

An approach or decision-making process that relies on verifiable data and evidence.

Core Values

Fundamental beliefs of a person or organization. These guiding principles dictate behavior and can help people understand the difference between right and wrong.