9. Modelling and evaluation of the pension fund's performance Pension funds commonly maintain a portfolio of stocks as well as a portfolio of bonds. Let MKT represent general stock market conditions and MANAB represent the abilities of the pension fund's management, while Rf represents the risk-free rate and RP represents the risk premium. What is the best way to model the change in the value of a pension fund's stock portfolio? V=f(Rf,MANAB) V=f(Rf,RR,MANAB) V=f(R,RP) V=f(AMCT,MANAB) Consider an actively managed pension fund that has a bond portfolio. The fund's performance can be evaluated by comparing its return to which of the following? A most conservative investment plan A benchmark bond index An exchange-traded fund representing the stock index A most aggressive investment plan