NO.PZ202301040900001301
问题如下：
(1) Based on the information provided, discuss ADSE’s risk tolerance.
选项：
解释：
ADSE appears to have above average risk tolerance for the following reasons:
• The plan has a small surplus (8% of plan assets); that is, the plan is overfunded by €8 million.
• The company’s balance sheet is strong (low use of debt).
• The company is profitable despite operating in a cyclical industry.
• The average age of its workforce is low.
ADSE’s risk tolerance is above average. the reasons are as following:
1.The average age of ADSE’s workforce is 39 years.The duration of the plan’s liabilities (which are all Europe-based) is 20 years. so the investment horizon is long and liqudity need is low and the risk tolerance is high,
2.This essentially active-lives plan has €100 million in assets and an €8 million surplus in relation to the PBO. so the fund status is overfunded and the risk tolerance si high.
