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For which of the following type of investor's would most likely consider funding liabilities the least important: a) Individuals b) Defined Benefit Pensions c) Life

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For which of the following type of investor's would most likely consider funding liabilities the least important: a) Individuals b) Defined Benefit Pensions c) Life Insurance Companies d) Non-Life Insurance Companies .) Banks This question is worth 2 points. This year (T=0), you made $60,000 and have $600,000 in your retirement account. Your salary is expected to grow at 2.5% per year from now until when you retire in 20 years (T=20). The appropriate discount rate for your future wages is 5.0% per year. Today (T=0), your financial capital, as a percentage of total capital, is closest to Round your answer to the nearest 1%. a) 39% b) 40% c) 41% d) 60% ) None of the above Use the graphs from below to help answer question 10. Top Graph: Total Capital over time based on different savings rates . Bottom Graph: Human & Financial Capital (% Total Capital Bottom) $2,500,000 $2,000,000 $1,500,000 . 14 . . . . 2018+ 20231 8202 Erot Stor Esot Sot 2068 1901 . 80% 60% 40% 20% Total Capital can be deconstructed into Financial Capital & Human Capital. depicts how become a larger proportion of Total Capital over time. _depicts how a lower savings rate leads to lower Total Capital appreciation over identical investment horizons b) Region D c) Region E d) Region E .) Region E Financial Capital Human Capital Financial Capital al canal Human Capital Financial Capital Line C Line A Line A Line A Line C

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