Which of the Following Statements About Early Retirement Is Most

question 180

Multiple Choice

Which of the following statements about early retirement is most accurate?

• A) Traditional early retirement plans are no longer legal because they represent age discrimination.
• B) An advantage of early retirement as a method of downsizing is that early retirement provides opportunities for younger employees to be promoted.
• C) Federal law requires firms to offer early retirement benefits to any worker who voluntarily offers to retire before the age of 60.
• D) Workers who receive an offer for early retirement are likely to gain by refusing the firm's first offer and holding out for a better deal.

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Definitions:

Treynor-Black Model

A portfolio optimization model that blends active and passive investments to optimize risk-adjusted returns.

Alpha Coefficient

A measure of the performance on a risk-adjusted basis, identifying the excess return of an investment relative to the return of a benchmark index.

Nonsystematic Variance

The portion of an investment's total variance that is specific to the investment itself, not related to the overall market movements, and can be reduced by diversification.