Question: QUESTION 37 The return objective for a pension fund is most likely a function of: a. The discount rate used to compute the present value

QUESTION 37

  1. The return objective for a pension fund is most likely a function of:

    a. The discount rate used to compute the present value of the pension obligation.

    b. Whether the fund has deficit or surplus.

    c. The characteristics of the workforce.

    d. Correlation between fund performance and employer performance.

QUESTION 38

  1. The board of trustees of an endowment fund has agreed with its financial adviser to permit the use of derivative securities to add value to the portfolio. This decision is most likely to appear as part of the:

    a. Liquidity constraint.

    b. Tax constraint.

    c. Unique circumstance constraint.

    d. Legal and regularity constraint.

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