Examlex

Solved

IBM Pension Fund Owns a Portfolio Consisting of the Common

question 7

True/False

IBM pension fund owns a portfolio consisting of the common stock of a large number of companies. Suppose the pension fund knows that two months from now it must sell stock in its portfolio to pay beneficiaries $20 million. The risk that IBM pension fund faces is that two months from now when the stocks are sold, the price of most or all stocks may be higher than they are today.


Definitions:

Charitable

Describes actions or organizations that are dedicated to helping those in need, often through donations or volunteer work.

Conscientious

Describes a person or behavior that is guided by or showing a desire to do what is right, typically characterized by carefulness and diligence.

Sociable

The characteristic of enjoying being with people and engaging in friendly interactions.

Self-Worth

An individual's belief in their own value or worthiness, often seen as a critical component of mental health.

Related Questions