andytrader

Which of the following is a difference between the investment objective for a liability based benchmark and an index based benchmark? If liabilities are chosen as a benchmark:

A) a return higher than the liability has to be achieved by any means.

B) the objective is only return oriented.

C) the objective is to match the amount and timing of the liability payments.

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The objective when managing a portfolio against a liability is to maintain sufficient portfolio value to meet the liabilities.