Briefly Describe the Difference Between the Two Types of Pension

question 27

Essay

Briefly describe the difference between the two types of pension or retirement plans that the Employee Retirement Income Security Act (ERISA)covers.

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Definitions:

Expected Return

The weighted average of the probable returns of an investment, considering all possible scenarios.

Standard Deviation

A numerical indicator used in statistics to represent the extent of scatter among data points.

Standard Deviation

A statistical measure that indicates the extent of deviation for a group as a whole, showing how much variation or dispersion exists from the average.

Cyclical Stock

A stock whose price is affected by macroeconomic or systematic changes in the overall economy.