Asked by
Leandra Gallegos
on Oct 19, 2024
Verified
In a defined benefit pension plan, the ________ bears all of the fund's investment performance risk.
A) employer
B) employee
C) fund manager
D) government
Defined Benefit Plan
A type of pension plan in which an employer promises a specified pension payment upon retirement, based on the employee's earnings history, tenure of service, and age.
Investment Performance
Investment performance measures how well an investment is doing, based on returns relative to risk and compared to a benchmark or other standard.
- Acquire knowledge about the divergences between defined benefit and defined contribution pension plans, especially in terms of the party responsible for bearing the risks.
Verified Answer
MC
Learning Objectives
- Acquire knowledge about the divergences between defined benefit and defined contribution pension plans, especially in terms of the party responsible for bearing the risks.
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