An Asset Allocation Plan Should Consider Which of the Following

question 60

Multiple Choice

An asset allocation plan should consider which of the following investor characteristics?
I. income and employment security
II. marital status
III. age and proximity to retirement
IV. social relationships and peer groups

• A) II only
• B) I, II and III only
• C) I, III and IV only
• D) I, II, III and IV

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Definitions:

Allocative Efficiency

The state of resource allocation where goods and services are distributed according to consumer preferences and utility maximization.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

Consumer Surplus

The gap between the amount consumers are prepared to spend on a product or service and the actual price they pay for it.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay.