Asked by
JANCEL DEL PRADO
on Oct 19, 2024
Verified
In a defined contribution pension plan, the ________ bears all of the fund's investment performance risk.
A) employer
B) employee
C) fund manager
D) government
Defined Contribution
A type of retirement plan in which the amount contributed to the plan is specified, but the future benefit amount is not guaranteed, depending on investment returns.
Investment Performance
The measure of how an investment has grown or declined in value, considering both capital gains and income, over a specific period.
- Become familiar with the varying characteristics of defined benefit versus defined contribution pension schemes, including the identification of the risk holder.
Verified Answer
JS
Learning Objectives
- Become familiar with the varying characteristics of defined benefit versus defined contribution pension schemes, including the identification of the risk holder.
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