Matching -An Individual Account Plan That Requires That an Employer Commit

question 14

Multiple Choice

Matching
-An individual account plan that requires that an employer commit to a specific contribution for-
mula.

• A)401(k) plan
• B)defined contribution plan
• C)profit sharing plan
• D)managed care program
• E)qualified retirement plan
• F)vested
• G)defined benefit pension plan
• H)money purchase plan
• I)COBRA
• J)cafeteria plan

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Definitions:

Standard Deviation

A statistical measure of the dispersion of a set of data from its mean, used in finance to quantify the volatility of investment returns.

Survivorship Bias

The logical error of concentrating on the people or things that "survived" some process and inadvertently overlooking those that did not because of their lack of visibility.

Investment Decisions

The process of deciding where to allocate resources in order to achieve the highest possible return.

Poor Performing Funds

Funds that consistently generate returns below their benchmark or peer group averages over a specified period.