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:

Self-Development

The process of improving oneself through such activities as enhancing employment skills, increasing consciousness, and building wealth.

Unconscious Instincts

Fundamental, innate drives or impulses that influence human behavior and decision-making, often without our conscious awareness.

Mass Media

Forms of communication produced by a few people for consumption by the masses.

Socialization

The lifelong process by which we learn our culture, develop our personalities, and become functioning members of society.