investment horizon不是五年吗？怎么会太短呢？

NO.PZ202206210100000306 问题如下 Sabonete Case ScenarioSabonete, S.A., is a multi-nationconsumer procts company heauarterein Lisbon, Portugal, with annurevenue of approximately €2 billion. Over the past severyears, the company’s growth strategy hcentereon expanng market share in emerging markets. Over half of revenues are from emerging markets, anthe remainr are from velopeEuropeeconomies. Oni Falana serves the chief investment officer of Sabonete’s finebenefit pension pl(SPP). Falana hengageoutsi consultant, Isabel Horvath, for assistanwith asset allocation. Falana scribes to Horvath the company’s key objectives with respeto the SPP: reafully fun(100%) status in five years, whipoint the liabilities will fully heeminimize fluctuations in expecteyear-to-yerequirecontributions, aninimize the ainistrative aninvestment costs associatewith managing the fun Falana provis Horvath with the following key facts anassumptions regarng Sabonete anthe SPP: The funis closeto new employees, but existing employees continue to accrue benefits unr the originterms.The funis 90% fun(€5 billion in assets anaccruebenefit obligation of €5.55 billion). A €75 million contribution will ma to the funthe enof this quarter. Future contributions are likely to substantially smaller.The average participant is 45 years ol anemployee turnover hbeen low.The salary growth rate is 3.2%The liability scount rate, currently 3.5%, is benchmarketo 10-yecorporate bon.The risk-free rate is currently 3.0%, anshort-term interest rates are expecteto remain stable. The current asset allocation another statisti(expectereturn, volatility, ancorrelation with globequities) of eaasset class are incatein Exhibit 1.Exhibit 1 SPP Current Asset Allocation anOther StatistiAsset ClassHorvath starts preparing economic balansheet for the SPP anmakes the following notes:· Emerging market equities have a 10% weight in the globmarket portfolio. However, given the firm’s familiarity with anthe opportunities they perceive in emerging markets, the SPP hhistorically been over-weighte(25%) in this asset class. · 60% of company revenue is from sales in emerging markets, of whihalf is attributable to sales in AfricThe revenue growth rate for Sabonete’s Africbusiness is high but very volatile. The firm’s revenues anprofitability are quite sensitive to emerging markets.· The firm hsignificant investments in Africreestate. It recently acquireseverlarge parcels of lanin Afrifor €200 million anis planning to make a major investment in new manufacturing facilities to boost margins. Baseon these factors anthe information from Exhibit 1, Horvath presents the current asset allocation of the plalong with two other options for consiration (see Exhibit 2).Exhibit 2 Current anProposeAsset Allocation OptionsRecee Rall, analyst in SPP’s pension office, makes the following statements regarng Option 1: Horvath states, “Option 1 provis a 95% probability of meeting the goof reaching fully funstatus in five years, but interim contributions are likely to quite variable. Option 2 is likely to result in a more stable contribution rate but with a lower probability of meeting the funng goal.” Falana plans to recommenOption 2, believing ththe greater certainty of meeting the requireyear-to-yecontributions is the more important objective. She asks Rall to recommena rebalancing polifor Option 2. He proposes the ranges shown in Exhibit 3 anprovis estimate of the relatetransaction costs.Exhibit 3 Rebalancing Ranges for Option 2Rall justifies his recommention on the basis of the following statements:A wi rebalancing range for globfixeincome is appropriate because of its low volatility, low transaction costs, anlow correlation with other asset classes in the portfolio. The allocation for private equity is challenging because a low-cost passive investment vehicle es not exist anmoling with a private equity inx captures only the return aspects of private equity without appropriate representation of risk. Falana scusses the recommenasset allocation with the Pension Committee. A new committee member, James Alessano, states thhis preferenwoulOption 1 because the best pension fun have aptethe enwment mol of asset allocation, whiha higher allocation to alternative investments. Question Whiof the following statements is the best response to Alessano’s rationale for justifying Option 1 for the SPP’s asset allocation? The proposemol: A.is not well suiteto the SPP given its objective of fully funng anheing its liabilities. B.woulbenefit the SPP because it cexpecteto generate higher returns, more thoffsetting the higher costs. C.hinherent illiquity premium, whiwill help Sabonete achieve its objective of fully funng the pension plan. SolutionA is correct. Alessano suggests ththe enwment mol shoulusethe pension plan. The enwment mol is not well suiteto meeting Sabonete’s objectives. The mol seeks to earn illiquity premiums, whirequire a long-time horizon to capture. Because Sabonete plans to hee its liabilities in five years, its investment horizon is too short to capture the illiquity premium this a criticcomponent of the enwment mol.B is incorrect. The enwment mol cexpecteto generate higher returns because of the illiquity premium, whiwoulmore thoffset the higher costs. However, Sabonete’s investment horizon is too short to capture the illiquity premium inherent in the mol. Further, the higher costs of the mol are inconsistent with Sabonete’s sire to minimize the investment anainistrative costs associatewith the plan. C is incorrect. Sabonete’s investment horizon is too short to capture the illiquity premium this a criticcomponent of the enwment mol. Further, the higher costs of the mol are inconsistent with Sabonete’s objective to minimize the investment anainistrative costs associatewith the plan. hello我觉得这个题option 1其实算是suitable 因为funis unrfunanit wants to achieve fully hee in 5 yrs,这样option 1 expectereturn is higher thcurrent portfoliom volatility 也比较小，现实中可能需要Option1来take aitionrisk to achieve higher return 当然虽然alts 的使用需要额外的费用，但是asset return也可能超过这些ain cost答案B其实也可以说得通，请问助教怎么理解的？谢谢

NO.PZ202206210100000306 问题如下 Whiof the following statements is the best response to Alessano’s rationale for justifying Option 1 for the SPP’s asset allocation? The proposemol: A.is not well suiteto the SPP given its objective of fully funng anheing its liabilities. B.woulbenefit the SPP because it cexpecteto generate higher returns, more thoffsetting the higher costs. C.hinherent illiquity premium, whiwill help Sabonete achieve its objective of fully funng the pension plan. SolutionA is correct. Alessano suggests ththe enwment mol shoulusethe pension plan. The enwment mol is not well suiteto meeting Sabonete’s objectives. The mol seeks to earn illiquity premiums, whirequire a long-time horizon to capture. Because Sabonete plans to hee its liabilities in five years, its investment horizon is too short to capture the illiquity premium this a criticcomponent of the enwment mol.B is incorrect. The enwment mol cexpecteto generate higher returns because of the illiquity premium, whiwoulmore thoffset the higher costs. However, Sabonete’s investment horizon is too short to capture the illiquity premium inherent in the mol. Further, the higher costs of the mol are inconsistent with Sabonete’s sire to minimize the investment anainistrative costs associatewith the plan. C is incorrect. Sabonete’s investment horizon is too short to capture the illiquity premium this a criticcomponent of the enwment mol. Further, the higher costs of the mol are inconsistent with Sabonete’s objective to minimize the investment anainistrative costs associatewith the plan. 看原文还以为是要问enwment mol的相关问题，但是看题完全没看懂，答案也没发现和enwment mol 有什么关系，老师可以讲解一下吗？

NO.PZ202206210100000306 问题如下 Whiof the following statements is the best response to Alessano’s rationale for justifying Option 1 for the SPP’s asset allocation? The proposemol: A.is not well suiteto the SPP given its objective of fully funng anheing its liabilities. B.woulbenefit the SPP because it cexpecteto generate higher returns, more thoffsetting the higher costs. C.hinherent illiquity premium, whiwill help Sabonete achieve its objective of fully funng the pension plan. SolutionA is correct. Alessano suggests ththe enwment mol shoulusethe pension plan. The enwment mol is not well suiteto meeting Sabonete’s objectives. The mol seeks to earn illiquity premiums, whirequire a long-time horizon to capture. Because Sabonete plans to hee its liabilities in five years, its investment horizon is too short to capture the illiquity premium this a criticcomponent of the enwment mol.B is incorrect. The enwment mol cexpecteto generate higher returns because of the illiquity premium, whiwoulmore thoffset the higher costs. However, Sabonete’s investment horizon is too short to capture the illiquity premium inherent in the mol. Further, the higher costs of the mol are inconsistent with Sabonete’s sire to minimize the investment anainistrative costs associatewith the plan. C is incorrect. Sabonete’s investment horizon is too short to capture the illiquity premium this a criticcomponent of the enwment mol. Further, the higher costs of the mol are inconsistent with Sabonete’s objective to minimize the investment anainistrative costs associatewith the plan. 如题