Table:
|  | As of June 30 |  |
| --- | --- | --- |
|  | 2019 | 2018 |
| Fixed income | 40% | 40% |
| Equities | 55% | 55% |
| Other | 5% | 5% |
| Total | 100% | 100% |
Paragraphs:
The defined benefit pension plan utilizes various investment securities. Generally, investment securities are exposed to various risks, such as interest rate risks, credit risk, and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur and that such changes could materially affect the amounts reported.
The following table presents the Company’s target for the allocation of invested defined benefit pension plan assets at June 30, 2019 and June 30, 2018:
Question:
Why is it possible that changes in the values of investment securities will occur?
Answer: Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur