Asked by Jalon Williams on Jul 13, 2024
Verified
Which of the following typically strives to earn a return on their investments that exceeds the actuarially determined rate of return?
A) banks
B) thrifts
C) mutual funds
D) pension funds
Actuarially Determined
Calculated based on actuarial methods and assumptions, often referring to pension plan contributions or insurance risk assessments.
Pension Funds
Investment pools that collect and invest contributions from workers and employers to provide retirement benefits to the workers.
Banks
Financial institutions licensed to receive deposits and make loans. They also offer various other financial services such as wealth management, currency exchange, and safe deposit boxes.
- Acquire knowledge on the constituents and approach of asset distribution in a financial investment portfolio.
Verified Answer
RP
Rahul PatelJul 19, 2024
Final Answer :
D
Explanation :
Pension funds typically strive to earn a rate of return that exceeds the actuarially determined rate of return in order to meet their future obligations to retirees. Banks, thrifts, and mutual funds may also aim to earn returns on their investments, but it is not necessarily their primary goal to exceed the actuarially determined rate of return.
Learning Objectives
- Acquire knowledge on the constituents and approach of asset distribution in a financial investment portfolio.