Questions for Section V - Pension Plans 1) Differentiate between defined benefit and defined contribution pension plans. Who bears the investment risk under each of these? What type of plan is easier to fund and manage? 2) What was the purpose of the establishment of the Pension Benefit Guaranty Corporation (PBGC)? 3) You are managing Wired Products Company's defined benefit pension plan. How would you go about designing an investment strategy for the company? What information would you need? What is your goal, as a company manager? 4) You have now moved to Exel Industries, which has a 401(k) (defined contribution) plan for its employees. As the manager of the 401(k) plan, what is your role? How does it differ from your role at Wired Products Company