Funds That Adjust the Asset Allocation Weights in the Portfolio

question 83

Multiple Choice

Funds that adjust the asset allocation weights in the portfolio to match the needs of an investor who is nearing retirement are known as

• A) Balanced funds
• B) Flexible portfolio funds
• C) Lifetime funds
• D) Money market funds
• E) Target date funds

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Definitions:

Stimulus Discrimination

The learned ability to differentiate between similar stimuli and respond only to the actual signal but not to similar stimuli.

Approximations

Incremental steps or behaviors that progressively resemble the target behavior or outcome, used in learning and conditioning.

Extinction

In psychology, it refers to the gradual weakening and eventual disappearance of a learned response, often used in the context of conditioned responses.

Avoidance

A coping strategy that involves evading certain situations, thoughts, or feelings that are perceived as uncomfortable or anxiety-provoking.