QUESTION Z HAS ONE PART FOR A TOTAL OF SMINUTES . Michael has developed an economic forecast for presentation to the Board of Trustees of Acme 's defined benefit pension plan . He projects that U . K . inflation will be substantially higher over the next three years than the Board's current forecast . Michael recommends that the Board immediately take the following actions based on his forecast . 1 . Revise the investment policy statement of the pension plan to take into account a change in the forecast for inflation in the U . K . 2. Reallocate pension assets from domestic ( LT. {. ) to international equities because he also expects inflation in the LT. K. to be higher than in other countries . 3. Initiate a program to protect the financial strength of the pension plan from the effects OF LT. K. inflation by indexing benefits paid by the plan . State whether each recommended action is correct or incorrect . Justify each of your responses with one reasonl