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The board of directors of a manufacturing firm is assessing the financial risks linked to the company's retirement fund, specifically focusing on the defined benefit plan. Which of the following statements correctly reflects the financial risks associated with the retirement fund?
A
Decreases in interest rates will reduce funding risk.
B
Funding risk represents the true long-term risk to the plan sponsor.
C
Funding risk is effectively transferred to the employees of the manufacturing company.
D
The longer the horizon for expected payouts, the lower the funding risk.