Which investment class is typically considered least volatile for long-term pension funding?

Understand the Problem

The question is asking about different investment classes and their volatility, specifically which one is considered the least volatile option for long-term pension funding. It involves understanding investment risk associated with various asset types.

More Information

Bonds and cash instruments are generally preferred for their lower volatility compared to stocks, making them suitable for long-term pension funding.

Sources

• Target-Date Retirement Funds - U.S. Department of Labor - dol.gov
• Money Market Funds: Advantages and Disadvantages - Investopedia - investopedia.com