A. What are the main differences in the management of a defined benefit pension plan, compared with
Question:
A. What are the main differences in the management of a defined benefit pension plan, compared with the management of a defined contribution pension plan?
B. How does the current age of a current worker (not a current retiree) impact the cost to the employer (sponsor) of a defined benefit pension plan? Explain fully.
C. Some employers offer defined benefit pension plans, while others offer defined contribution pension plans. Separately explain how risk management, both by employer as well as by employer, plays a role in which type of plan the employer decides to offer.
D. Now changing subject, so the question will not be too short. Identify and explain all three separate components of a rate of interest (or of any other required rate of return). Draw and explain the utility function, from the beginning of the semester, if necessary to find any of the three components.
E. Apply all three of the components of a rate of interest, from part D, to explain how an insurance company expects to make a profit, in the long run.
Essentials of business communication
ISBN: 978-1111821227
8th Edition
Authors: Mary Ellen guffey, Dana loewy