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A Fully-Funded Pension Plan Can Invest Surplus Assets in Equities

Question 53

Multiple Choice

A fully-funded pension plan can invest surplus assets in equities provided it reduces the proportion in equities when the value of the fund drops near the accumulated benefit obligation. This strategy is referred to as


A) immunization.
B) hedging.
C) diversification.
D) contingent immunization.
E) overfunding.

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