NO.PZ2023010409000019
问题如下：
After success working with
Whatsit Widgets, Stuart has been called to help with the Pension Reserves fund
of the Commonwealth of Massachusetts. Presently, the plan is overfunded.
There are no
liquidity requirements at this time, and none expected for many years. Stuart
considers the four portfolios shown in Exhibit 1.
Recommend an asset allocation in Exhibit 1 for the Commonwealth’s pension reserve fund and justify your response with two reasons.
选项：
解释：
Portfolio D has the best-suited asset allocation.
Justification:
The Commonwealth’s pension reserve fund is currently in the accumulation phase. During this phase, the pension reserve funds are not taking withdrawals and will generally invest in a diversified portfolio with the majority in equities and alternative investments.
Given the allocation choices provided, Portfolio D has the greatest weighting in equities and alternative investments.
Portfolio D is the most suitable asset allocation for the Commonwealth’s pension reserve fund.
In the accumulation phase, the plan is overfunded with no liquidity requirements. So we can invest in significant equities and relatively illiquid assets like alternatives.
The portfolio D has the highest illiquid investments.
