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Level III
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Asset Allocation
Asset Allocation
Hard
A pension fund has a funded ratio of 95% and its investment policy specifies a liability glide path. As the funded ratio increases toward 105%, the fund should most likely:
A
Increase the allocation to liability-hedging assets and decrease return-seeking assets
B
Maintain the current allocation until reaching 105%
C
Increase the allocation to return-seeking assets to build a larger surplus
D
Shift entirely to liability-hedging assets immediately
Select an answer to continue
Tags
#liability-glide-path
#funded-ratio
#pension-fund
#liability-hedging
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