Q4 When considering plan types one of the primary distinctio

Q4 When considering plan types, one of the primary distinctions is who has investment risk In this context, investment risk a descibes which entity is responsiblo for poor (as well as good) investment returns b is not an issue if you invest in tho stock market O c does not apply for retirement investing O \"d is always borne by the plan sp onsor, regardless of plan type

Solution

There can be different types of plan for retirement which defines the benefits and risk capacity of plan sponsors and plan administrators. If plan is solely managed by plan sponsors and plan provides guranteed return, then in that case investment risk will be borne by plan sponsors but on the other hand, if plan is choosen by employee and managed by him then investment risk will be borne by employee. So in the given context investment risk describes which entity is responsible for poor as well as good investment returns.

Correct answer for the given question is option A.