In General, an Older Saver Should Choose a Financial Portfolio

question 52

Multiple Choice

In general, an older saver should choose a financial portfolio based on

• A)selecting safe assets to earn an expected real return of about zero.
• B)maximizing expected return with only limited concern for variability
• C)equal concern for expected return and variability.
• D)avoiding tax-free securities.

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Definitions:

Small, Incremental Steps

A gradual approach to change or progress, characterized by making minor adjustments or improvements over time.

Recognize Opportunities

The ability to identify and understand potential chances for growth, improvement, or advantage in various scenarios.

Attributions

The process by which individuals explain the causes of behavior and events; in organizational behavior, it often relates to how leaders understand and justify the actions of their team members.

Charisma

A compelling charm or allure that inspires devotion or admiration in others.