7. Pension fund management and asset allocation Which of the following are guidelines the corporation owning the pension fund specifies for the managing institution? Check all that apply. A desired minimum rate of return on the overall portfolio The maximum amount to be invested in re n real estate The minimum size of companies in which to invest The percentage of the portfolio that should be used for stocks or bonds The minimum acceptable quality ratings for bonds Public pension portfolios are dominated by common stock. By contrast, private pension portfolios are evenly invested in corporate bonds, stock, and other credit Instruments True False What are the benefits of a passive investment strategy? Check all that apply. A maximum rate of return on the overall portfolio - Transparency of the investment strategy The minimum amount to be invested in real estate Alignment with the board's recommended long-term Investment allocation why do the portfolio Managers have an incentive to take more risk than is appropriate? Managers are rewarded if the portfolio performs very well but are not penalised if the portfolio performs poorly Managers are penalized regardless of whether the portfolio performs poorly or very well Managers are rewarded regardless of whether the portfolio performs poorly or very well. Managers are not rewarded if the portfolio performs very well but are penalized if the portfolio performs poorly. 7. Pension fund management and asset allocation Which of the following are guidelines the corporation owning the pension fund specifies for the managing institution? Check all that apply. A desired minimum rate of return on the overall portfolio The maximum amount to be invested in re n real estate The minimum size of companies in which to invest The percentage of the portfolio that should be used for stocks or bonds The minimum acceptable quality ratings for bonds Public pension portfolios are dominated by common stock. By contrast, private pension portfolios are evenly invested in corporate bonds, stock, and other credit Instruments True False What are the benefits of a passive investment strategy? Check all that apply. A maximum rate of return on the overall portfolio - Transparency of the investment strategy The minimum amount to be invested in real estate Alignment with the board's recommended long-term Investment allocation why do the portfolio Managers have an incentive to take more risk than is appropriate? Managers are rewarded if the portfolio performs very well but are not penalised if the portfolio performs poorly Managers are penalized regardless of whether the portfolio performs poorly or very well Managers are rewarded regardless of whether the portfolio performs poorly or very well. Managers are not rewarded if the portfolio performs very well but are penalized if the portfolio performs poorly