Which of the Following Methods Assumes That the Accumulated Savings

question 7

Multiple Choice

Which of the following methods assumes that the accumulated savings will be depleted at the end of an individual's lifetime?

• A)Capital preservation.
• B)Pure annuity.
• C)Monte Carlo simulation.
• D)Stress tested.

---

Definitions:

Growth Rate of Earnings

It is the rate at which a company's earnings are increasing or decreasing over a specific period, often used by investors to gauge the company's profitability trends.

Constant-Growth DDM

A model for valuing a stock by assuming constant dividends that grow at a steady rate indefinitely.

Beta

A gauge for determining the volatility or inherent risk of a security or portfolio against the market at large.

Dividend

A disbursement from a company to its shareholders, commonly in the form of profit distribution.