Diversifying a Pension Plan's Investments to Minimize the Risk of Large

question 18

True/False

Diversifying a pension plan's investments to minimize the risk of large losses is considered a fiduciary responsibility.(Title I: Protection of Employee Rights)

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Definitions:

Variable Cost

Expenses that fluctuate in direct proportion to the amount of production or output, like labor and materials.

Fixed Costs

Expenses that do not change in total regardless of changes in the volume of goods or services produced or sold.

Variable-rate

A term used to describe a financial instrument or system where the interest rate can change over time based on predetermined conditions or an index.

Multi-leaf Spring

A type of suspension spring made of several layers of metal bound together to absorb shocks and support loads.