Asset Allocation: Expected Return vs Liability Growth
This lesson is part of the course
In this lesson
You work out the expected return of the Halvern Plan's asset mix, roll the assets and the liability forward one year and find the return the assets need just to keep the funding ratio where it is.
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Lessons in this course
- The DB Benefit Formula: Accrual Rate × Service × Final Salary Locked
- Projected Benefit Cash Flows by Year Locked
- The Liability: Present Value of Benefit Cash Flows with NPV Locked
- Funding Ratio, Surplus & Deficit and a Simple Stress Test Locked
- Liability Sensitivity: Duration Estimate vs Full Revaluation Locked
- Closing the Deficit: Recovery-Plan Contributions with PMT Locked
- Asset Allocation: Expected Return vs Liability Growth Locked
- Liability-Driven Investing: Interest-Rate Hedge Ratio by Duration Matching Locked