A选项错哪了？

问题如下：

4.6 A company's pension fund is established as a defined benefit plan, and therefore the board must consider funding risk. Which of the following statements about the pension fund’s funding risk is correct?

选项：

A.The longer the horizon for expected payouts, the lower the funding risk. B.Decreases in interest rates will reduce funding risk. C.The funding risk has been effectively transferred to the employees. D.Funding risk represents the true long-term risk to the plan sponsor.

解释：

The time horizon of payouts does not eliminate funding risk. In fact it is the mismatch between assets and liabilities that creates funding risk. In an low interest rate environment the value of equities will rise, however the value of the liabilities are likely to increase more thereby exacerbating funding risk. Funding risk is transferred to employees with a defined contribution plan. Immunizing the portfolio, essentially matching duration of assets and liabilities, will reduce funding risk.