Pension Finance Quiz
Welcome to the Pension Finance Quiz!! This quiz is not intended to assess your knowledge, but to provide some interesting, useful information that can improve your actuarial practice. You probably know the right answer to some of these questions, but if you knew the answers to all of them, then you wouldn't be learning anything and there would be no point to the quiz.
The quiz format is intended to get you thinking about some challenging concepts outside the scope of what we practice and think about on a day-to-day basis as pension actuaries. Thinking about the question, attempting an answer and then reading the information provided along with the correct answer will hopefully prove to be an engaging, fulfilling learning process. Links to additional information on some topics are provided.
Despite the fact that most of us don't get a chance to think about these concepts very often, they are important in the world of pension plans and a better understanding of them can help you and ultimately your clients.
The quiz is divided into three sections:
- Section I - Interest rates (Treasury rates, corporate bond rates, yield curves, duration)
- Section II - Investment theory (efficient markets, capital asset pricing model, law of one price, arbitrage)
- Section III - Investment practice (Liability driven investing, cash balance plans, lump sums)
At least some of the questions in each section build on each other and it will useful to go through the questions in order. It is not necessary to do the three sections themselves in any particular order. Each section will take 15-20 minutes to complete, though it could take longer if you stop to browse any of the links to additional information.
Again, do not use this to assess your knowledge, but to learn and solidify your understanding of these challenging concepts. Click any of the links above to start learning right away!
Additional information related to Pension Finance topics can be found on the Pension Finance Library page.