关于asset size和risk tolerance的关系

问题如下：

The risk tolerance of Maglav’s pension plan can be best characterized as being:

选项：

below average.

average.

above average.

解释：

C is correct.

The risk tolerance for Maglav’s defined benefit plan is high and thus above average. Several factors influence the plan sponsor’s ability to assume risk. For Maglav, the overfunded status of the pension fund allows the plan to withstand more volatility, and its small size relative to the company size implies greater risk tolerance. The low correlation of Maglav’s operating results with pension asset returns also results in greater risk tolerance. Finally, the workforce characteristics imply greater risk tolerance. The younger workforce increases the duration of the plan liabilities and enables the sponsor to take on more liquidity risk. The high turnover of the workforce means fewer employees may be vested, reducing the number of employees entitled to receive defined benefit payments. All these factors contribute to an above average risk tolerance for Maglav’s defined benefit plan.