If Pension Fund Investment Decisions Are Made with the Objective

question 7

Multiple Choice

If pension fund investment decisions are made with the objective of generating cash flows at the same time as planned outflow payments, the fund follows a ____ strategy. When comparing matched funding and projective funding, ____ is more flexible for portfolio managers.

• A)matched funding; matched funding
• B)projective funding; matched funding
• C)projective funding; projective funding
• D)matched funding; projective funding

---

Definitions:

Type I Error

Incorrectly dismissing a true null hypothesis as false.

Control Chart

A graphical tool used in quality control processes to monitor changes and variations in a process over time.

Control Limits

Statistical boundaries set in process control that indicate the permissible range of variation for a process to remain in control.

Assignable Causes

Specific, identifiable factors that cause variation in a process or system, as opposed to random variation.