Justin Bryant Worked for ABC Corporation for Ten Years Before

question 105

Multiple Choice

Justin Bryant worked for ABC Corporation for ten years before leaving. He was told that his benefits have vested. What does this mean?

• A) He can withdraw the benefits at any time.
• B) He needs to cash out his benefits immediately or he will lose them.
• C) He has lost his pensions earned at ABC Corporation.
• D) He has accrued pension benefits at retirement age.

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Definitions:

Time Weighted

A method of calculating investment returns that eliminates the effects of cash inflows and outflows on the performance.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Dollar-Weighted Return

A method of calculating an investment's return that takes into account the timing and amount of capital inflows and outflows.

Internal Rate

The internal rate of return (IRR) is a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.