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Some believe that equity based rewards only motivate recipients to increase the price of the stock, rather than improve company performance, which in turn should result in a higher price. Do you agree with this statement? Why or why not?

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Q1. It is said that in a defined benefit retirement plan, the employer bears the financial risk while the employee bears the financial risk in a defined contribution retirement plan. Explain what is meant by this.

Q2. Some believe that equity based rewards only motivate recipients to increase the price of the stock, rather than improve company performance, which in turn should result in a higher price. Do you agree with this statement? Why or why not?

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