A
Acadi
Fi
Courses
Knowledge Hub
Community
Practice
Pricing
About
Search
⌘K
Question Bank
/
CFA
/
Level III
/
Asset Allocation
Asset Allocation
Medium
A corporate pension plan with $1.2B in assets and $1.0B in pension liabilities (85% in bonds with 12-year duration) considers its asset allocation. The plan's investment committee should most likely be concerned about:
A
Surplus volatility rather than asset-only volatility
B
Maximizing the Sharpe ratio of the total portfolio
C
Tracking error relative to a 60/40 benchmark
D
Minimizing portfolio volatility regardless of liability structure
Select an answer to continue
Tags
#liability-relative
#surplus-optimization
#pension-fund
#funded-ratio
More Asset Allocation questions
Start full Level III quiz