Retirement Accounts
In a defined benefit pension plan, who bears the investment risk?
In a defined benefit plan, the employer bears all investment risk because the plan promises a specific benefit regardless of investment performance. The employer must contribute enough to fund the promised benefits, whet
Complete Analysis & Legal Rationale
In a defined benefit plan, the employer bears all investment risk because the plan promises a specific benefit regardless of investment performance. The employer must contribute enough to fund the promised benefits, whether investments perform well or poorly.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.