In the context of managing risk within the pension fund sector, which of the following statements is correct?

Exam-Like

A pension plan's total VaR is equal to the sum of its policy-mix VaR and active management VaR.

11.1%

Pension fund risk analysis does not consider performance relative to a benchmark.

11.1%

In most defined-benefit pension plans, if liabilities exceed assets, the shortfall does not create a risk for the plan sponsor.

11.1%

From the plan sponsor's perspective, nominal pension obligations are similar to a short position in a long-term bond

66.7%

Financial Risk Manager Part 2