All of the Following Are Examples of the "Income Objective

question 19

Multiple Choice

All of the following are examples of the "income objective" of investment except:

• A) A 65-year-old planning how to use his wealth to support himself now that he is retired.
• B) A pension fund trying to match revenues to its current pension payout needs.
• C) A university endowment fund wanting to use gift assets to fund an annual scholarship program.
• D) A 25-year-old planning to be able to buy a house in 5 years.
• E) A bank investing assets so as to be able to pay interest on current savings deposits.

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Definitions:

Small Number

A numeric value that is considered to be significantly less in magnitude compared to typical or average values.

Large Number

A numeric value that is significantly above average or expected in size or magnitude.

Porter's Five Forces

A framework analyzing a business's competitive environment based on five key forces: competitive rivalry, supplier power, buyer power, the threat of substitution, and the threat of new entrants.

Zero-Sum Game

A situation in which one participant's gains or losses are exactly balanced by the losses or gains of the other participants.