CGFO - Financial Administration -
Pension Benefits Exam Questions and
Answers Graded A+
Alpha - Correct answer-Measure of risk-adjusted performance
Beta - Correct answer-Measure of a fund's or a stock's risk in relation to the market
or to an alternative benchmark
Gamma - Correct answer-Ratio of a change in the option delta to a small change in
the price of the asset on which the option is written
PERS - Correct answer-Public Employee Retirement System
CAFR - Correct answer-Comprehensive Annual Financial Report
PERS CAFR - Correct answer-Comprehensive Annual Financial Report for a
Public Employee Retirement System
Yield - Correct answer-Percentage rate of return paid on a stock in the form of
dividends, or he effective rate of interest paid on a bond or note
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Yield Curve - Correct answer-Graphic depiction of the relationship between the
yield on bonds of the same credit quality but different maturities
Sharpe Ratio - Correct answer-Measure of a portfolio's excess return relative to the
total variability of the portfolio
Small-cap - Correct answer-A stock with a small capitalization, meaning a total
equity value of less than $500 million
Actuary - Correct answer-Person or company that estimates the value of claims
pending and the estimated reserves needed
Actuarial Valuation - Correct answer-Process of assessing the viability of a PERS
Defined Benefit Plan - Correct answer-Pension plan obliging the sponsor to make
specified dollar payments to qualifying employees
Pension obligations are effectively the debt obligation of the plan sponsor
Defined Contribution Plan - Correct answer-Pension plan where a sponsor is
responsible only for making specified contributions in to the plan on behalf of
qualifying participants
Jensen Index - Correct answer-Uses the capital asset pricing model to determine
whether a money manager outperformed a market index
Return on Equity (ROE) - Correct answer-Indicator of profitability
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Pension Benefits Exam Questions and
Answers Graded A+
Alpha - Correct answer-Measure of risk-adjusted performance
Beta - Correct answer-Measure of a fund's or a stock's risk in relation to the market
or to an alternative benchmark
Gamma - Correct answer-Ratio of a change in the option delta to a small change in
the price of the asset on which the option is written
PERS - Correct answer-Public Employee Retirement System
CAFR - Correct answer-Comprehensive Annual Financial Report
PERS CAFR - Correct answer-Comprehensive Annual Financial Report for a
Public Employee Retirement System
Yield - Correct answer-Percentage rate of return paid on a stock in the form of
dividends, or he effective rate of interest paid on a bond or note
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Yield Curve - Correct answer-Graphic depiction of the relationship between the
yield on bonds of the same credit quality but different maturities
Sharpe Ratio - Correct answer-Measure of a portfolio's excess return relative to the
total variability of the portfolio
Small-cap - Correct answer-A stock with a small capitalization, meaning a total
equity value of less than $500 million
Actuary - Correct answer-Person or company that estimates the value of claims
pending and the estimated reserves needed
Actuarial Valuation - Correct answer-Process of assessing the viability of a PERS
Defined Benefit Plan - Correct answer-Pension plan obliging the sponsor to make
specified dollar payments to qualifying employees
Pension obligations are effectively the debt obligation of the plan sponsor
Defined Contribution Plan - Correct answer-Pension plan where a sponsor is
responsible only for making specified contributions in to the plan on behalf of
qualifying participants
Jensen Index - Correct answer-Uses the capital asset pricing model to determine
whether a money manager outperformed a market index
Return on Equity (ROE) - Correct answer-Indicator of profitability
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
