Schweser Mock 2 AM - Inst IPS

CFA Level III
#1

For anyone who has done this question, explain to me the answe to 11D. I Understand what the answer says. I thought liquidity needs were high because of the low active to retired lives and plan features of early retirement. They say young workforce allows them low liquidity (which is tru on its own, but untrue with the other facts give)

On another note, I cant stand grading these things. Sometimes I answer right but wording is a bit off and i fear that would still not get full credit…

Thanks

#2

I have the same problems. Even I thought it that way and had answered that liquidity requirements would be high considering that the early retirement option might be exercised but they’ve focused on younger workforce and simply disregarded the plan feature. I had written higher liquidity needs based on plan feature and higher retired lives. But schweser has not considered it at all. Although they only mention in parenthesis that PHL may consider additional reserves for plan features.