Just did an IFT AM exam from 2016 where it was stated that “management wants to reduce surplus risk rather than limit contribution risk”. Couldnt find another thread about this, which is why I created a new one.
What is the difference between surplus risk and contribution risk?
Which one is affected by immunization and how?
If i were to select an allocation percentage between equity and bonds, how would these risks be affected? (e.g. high equity and low percentage to bonds)