there is something I don´t get from questions 4 and 6… If the company is doing good, is a going concern, etc… I don´t understand CFA explanation that the time horizon will be based on the expected life of the plan… Because if the company is expected to last forever, shouldn´t the pension have an infinite investment time horizon? thx
Company may terminate the plan.
The ultimate beneficiaries are the employee, I would agree that with a workforce approaching retirement, time horizon for this particular plan is rather short.
agree, but I guess that the old workforce will be replaced by a younger one when they retire, so that the company can last, so that the pension keeps going and going and going… for the exam, I think I will not try to think or assume anything when facing this kind of questions… always gets me to the wrong answer
What did they said about “assumption?” Mother of all f-up? ha…anyway, I am with you, I will try not to have an opinion on the exam.