Question: Consider a state pension fund that needs to generate a series of fixed payments for its retirees. Yet, assume that its compensation for its portfolio

Consider a state pension fund that needs to generate a series of fixed payments for its retirees. Yet, assume that its compensation for its managers is tied to the return earned on the investments each year. Write a short essay that explains how the compensation plan might lead to investment strategies that do not serve the needs of the retirees.

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