You overheard a conversation by trustees of a definedbenefit pension plan about how successfulthey have been in making asset allocation decisionsand selecting asset managers
Every yeartheir asset allocation decision has resulted in theallocation to the top-performing asset classes, andthe managers that they selected outperformed theasset class benchmark. Comment on whether ornot you can judge whether these trustees did aneffective job in directing the pension plan.
It is hard to judge whether these trustees did an effective job in directing the pension plan without knowing to what extent the value of the liabilities have changed. What the trustees should primarily consider is the funding gap, which is the difference between the market value of the assets and the value ofthe liabilities.Thus, knowing an increase in assets is not enough but what is important is how their increase compares with changes in the liabilities. For example, if the increase in liabilities is greater than that of assets, then the trustees cannot claim to have done an effective job in directing the pension plan.
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Which of the following is true about trends in wholesaling?
A) New laws prevent wholesalers from having their own retailing operations. B) Value-added customer relationships have been replaced by control systems. C) Merchant wholesalers are decreasing in number and relevance. D) The demand for lower prices and higher quality has increased. E) Bulk breaking is increasingly popular and necessary.
The national standard of care is a doctrine that states that a state ________
A. must treat aliens the same way that it treats its own nationals B. must try an alien according to the laws existing in the alien's country C. is responsible for injury to an alien when the state violates international norms D. is liable for the actions of the alien within its territory