投资学第7版Test Bank答案26(3)

2021-01-20 18:47

投资学第7版Test Bank答案

7. Workers who change jobs may wind up with lower pension benefits at retirement than

otherwise identical workers who stay with the same employer, even if the employers have defined benefit plans with the same final-pay benefit formula. This is referred to as

A) an accumulated benefit obligation.

B) an unfunded liability.

C) immunization.

D) indexation.

E) the portability problem.

Answer: E Difficulty: Easy

Rationale: The portability problem results in reduced benefits for workers who change jobs but cannot take accumulated benefits from defined benefit plans when they move.

8. The risk tolerance level is typically highest for __________.

A) banks

B) fire and casualty insurance companies

C) life insurance companies

D) A and B

E) A and C

Answer: A Difficulty: Easy

Rationale: See Table 26.2.

9. The __________ the proportion of total return that is in the form of price appreciation, the __________ will be the value of the tax-deferral option for taxable investors.

A) greater, greater

B) greater, lower

C) lower, greater

D) cannot tell from the information given.

E) none of the above

Answer: A Difficulty: Easy

Rationale: Price appreciation can be deferred and thereby taxed at the lower capital gains rate.


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