For an Investor in a Life-Cycle Fund, the Bond Allocation

question 46

Multiple Choice

For an investor in a life-cycle fund, the bond allocation generally:

• A) is 0%.
• B) increases over time.
• C) decreases over time.
• D) remains constant over time.

Understand the principles of fair value accounting and its application to investment valuation.

Calculate and interpret the dividend yield on common stock.

Identify the contents and exclusions of management's discussion and analysis in annual reports.

Recognize how and where different types of financial statement items, such as losses on disposal and changes in accounting methods, are reported.

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Definitions:

Compliance Technique

Strategies used to persuade or encourage individuals to agree to requests or demands.

Foot-In-The-Door

A persuasive technique where agreeing to a small request increases the likelihood of agreeing to a larger request later.

Door-In-The-Face

A persuasion strategy where a large, likely-to-be-rejected request is made first, followed by a smaller, more reasonable request.

Groupthink

A phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.