Which of the Following Is Not a Possible Reason for Implementing

question 5

Multiple Choice

Which of the following is not a possible reason for implementing flexible benefit plans?

• A) cutting benefit costs
• B) more diverse work force
• C) union demands
• D) shift employee perspective away from an entitlement approach

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Definitions:

Arbitrage Pricing Theory

A theory that describes how the price of assets or securities is determined through the relationship to several risk factors or theoretical market indices.

Stephen Ross

An influential economist and finance professor known for his work in developing the Arbitrage Pricing Theory and other significant contributions to finance.

Security Market Line

A graphical representation of the expected return of investments as a function of their risk, depicting the relationship between the risk and the expected return of the market.

Fairly Priced

A term indicating that an asset's selling price is considered to be in line with its intrinsic value.