The Risk That Is Linked Across Outcomes Is Called ________

question 91

Multiple Choice

The risk that is linked across outcomes is called ________.

• A) diversifiable risk
• B) common risk
• C) uncorrelated risk
• D) independent risk

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Definitions:

Pension Liability

The amount of money a company is required to pay into its employees' retirement plans in the future.

Accumulated Benefit Obligation

An estimate of the total amount of an employer's obligation for pension benefits earned by employees to date, not based on future salary increases.

Plan Assets

Assets specifically identified to fund the obligations of a pension or other employee benefit plan.

Pension Funding

The financial contributions made by a company to a defined benefit pension plan to meet future pension obligations to retirees.