1. Which of the following factors would increase a US Defined Benefit Pension plan’s ability to take more risk when allocating plan assets?

I. A provision for early retirement is added to the plan

II. The correlation between company profits and equity market performance becomes stronger

III. The baby boomer generation increases the average age of the workforce

A. I

B. II

C. III

D. II,III

E. None of the statements

2. Which of the following statements about pensions over time is (are) TRUE?

I. The return requirement and discount rate for plan assets have both been decreasing

II. In terms to total AUM, the popularity of DB plans have been declining relative to DC plans

III. Allocation to alternative investments has been increasing

A. I

B. II

C. I,III

D. II,III

E. All of the statements