Question text UniSuper is the super fund dedicated to people working in Australia's higher education and research sector. With around 395,000 members and over $60 billion in net funds under management, UniSuper is one of Australia's largest super funds. Most members have the choice to join either the Defined Benefit division or Accumulation (i.e. Defined Contribution) division at the start of their employment with eligible Australian universities. Professor Priscilla Chang has recently moved from the US to Australia to take up a senior academic position in the School of Astronomy at the Australian National University. Being unfamiliar with the superannuation system in Australia, she would need to consult you, a financial advisor affiliated to UniSuper, to get some basic understanding of the structure of the two divisions at UniSuper and associated benefits and risks for members (Note: The questions must be answered from the perspective of a UniSuper member.). In particular, you are requested to write a note to briefly explain the following items of both Defined Benefits and Defined Contribution divisions: 1) How much pension is eligible to receive when she retires, assuming that she would be employed by ANU for 15 years before she is able to tap into her superannuation? (Note: A brief description of what factors are involved in the valuation of her superannuation account is sufficient. No specific formula is expected.) 2) Given the fact that her superannuation is the only resource she has for her retirement, you believe that the primary risk for Professor Priscilla Chang is the shortfall of pension to support her desired life style in retirement. For each division, identify one important and relevant quantitative risk measure and explain how this risk measure is related to the chance that she may not be able to achieve her objective. Please structure your note carefully using plain language and specific examples so that a person like Professor Priscilla Chang may grasp the ideas given that she only has basic understanding of investment and risk.