Which of the Following Formulas Is Not Used to Determine

question 11

Multiple Choice

Which of the following formulas is not used to determine pension benefits for defined benefit pension funds?

• A)Flat-benefit formula
• B)Career-average formula
• C)Final-pay formula
• D)Career-contribution formula
• E)All of these choices are correct.

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Definitions:

Risk-Free Rate

The return on an investment with no risk of financial loss, often represented by government bonds.

Beta

A measure of a stock's volatility in relation to the overall market; indicates the relative risk of the investment.

Expected Rate of Return

The profit or loss one anticipates on an investment, considering all potential outcomes and their likelihoods.

AT&T Stock

Equity shares of AT&T Inc., a multinational conglomerate holding company and one of the world's largest telecommunications companies.