Many Defined Benefit Pension Plans Have a Target Rate of Return

question 2

Multiple Choice

Many defined benefit pension plans have a target rate of return on investment equal to ________.

• A)the firm's return on equity
• B)the plan's assumed actuarial rate of return
• C)the economic inflation rate because wages often increase with inflation
• D)the estimated share market return

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Definitions:

Actual Notice

A legal term referring to the direct and clear knowledge about a fact or situation.

Orally

Orally means communicated or expressed through spoken words rather than in written form or by any other means of communication.

Expressed Agency

An agency relationship clearly stated in oral or written terms.

Agency

A relationship between two parties in which one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.