When Using a Constant-Dollar Plan

question 83

Multiple Choice

When using a constant-dollar plan?

• A) The percentage of funds in the speculative portion of the portfolio should increase over time.
• B) The ratio of safe funds to speculative funds remains constant over time.
• C) Gains from the speculative portion of the portfolio are transferred to the safe portion of the portfolio.
• D) The amount of money in the speculative portion of the portfolio should decline over time.

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Definitions:

Transformation

A thorough or dramatic change in form or appearance.

Isobutylbenzene

An organic compound made up of a benzene ring attached to an isobutyl group, used in the manufacture of other chemicals.

Benzene

A carcinogenic aromatic hydrocarbon with a ring of six carbon atoms, used as a starting material in the manufacture of many chemicals.

Organic Product

A molecule or compound produced from organic precursors, often through reactions involving carbon-based molecules.