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7)__________ in the process of asset allocation.A)Deriving the efficient portfolio frontier is a stepB)Specifying asset classes to be included in theportfolio is a stepC)Specifying the capital market expectations is astepD)All of theoptions are steps.E)None of theoptions are steps.Version 16
8)Questionnaires and attitude surveys suggest that risktolerance
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9)__________ can be used to create a perfect CPI-measured inflation hedge.
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10)A fully-funded pension plan can invest surplus assetsin equities provided it reduces the proportion in equities whenthe value of the fund drops near the accumulated benefitobligation. This strategy isreferred to as
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11)Workers who change jobs may wind up with lowerpension benefits at retirement than otherwise identicalworkers who stay with the same employer, even if theemployers have defined benefit plans with the same final-paybenefit formula. This isreferred to asA)an accumulated benefit obligation.B)an unfunded liability.C)immunization.D)indexation.E)the portabilityproblem.
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12)The __________ the proportion of total return that isin the form of price appreciation, the __________ will be thevalue of the tax-deferral option for taxable investors.
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13)An important benefit of Keogh plans is that

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Term
Fall
Professor
N/A
Tags
Paulina Lesky, Chris Silvers

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