NO.PZ2023010409000015
问题如下：
Ralph Stuart, CFA has been
hired to review the pension plan for Whatsit Widget Company (‘Whatsit’). Stuart
has significant experience with pension plans and an extensive knowledge of
external managers. Whatsit is the leading manufacturer of widgets, with the
majority of sales generated within the United States. In recent years new competitors
have entered the industry leading to declining sales, although Whatsit remains
the market leader and the firm’s balance sheet has low debt to equity ratios.
To assist in the
penetration of new markets utilizing social media, Whatsit has recently hired a
large team of younger workers. Several employees have retired in recent years
and are drawing payouts from the plan, but with the addition of the new hires,
the average age of the workforce remains low. Employees currently taking
distributions from the fund represent approximately 5% of the total workforce.
Determine the risk tolerance of Whatsit’s existing pension plan. Justify your response with two reasons.
选项：
解释：
The risk tolerance of the existing plan is above average. Justification (any two reasons are acceptable):
Younger overall workforce with a large portion having little service time
Perpetual time horizon
Low current payouts to retired workers
Balance sheet has low debt-to-equity ratio
The risk tolerance of Whatsit’s existing pension plan is above average.
Because it has a large team of younger workers with little service time. Only a few retirees with low payouts.The firm’s balance sheet has low debt to equity ratios.
