FIN200: Tertiary sector employees - Finance Assignment

Internal Code: MAS3577

Finance Assignment:

A. What are the important factors that should be considered by tertiary sector employees when they are deciding whether to place their superannuation contributions in the Defined Benefit Plan or the Investment Choice Plan? What may issues relate to the concept of the time value of money be important in this decision-making process? Explain. B. “If the efficient-market hypothesis is true, the pension fund manager might as wel select a portfolio with a pin.” Explain why this is not the case.