When Deciding an Asset Allocation, Typically, Households Should Hold

question 71

Multiple Choice

When deciding an asset allocation, typically, households should hold:

• A)only stocks when they are young.
• B)more bonds when they are young.
• C)only cash when they near retirement.
• D)more stocks when they are young.

---

Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, often used to estimate population parameters.

Birth Weight

The weight of a baby at the time of its birth, an important indicator of newborn health and future development.

Population Variance

A measure that quantifies the degree to which values in an entire population vary from the population mean.

Sampling Distribution

A distribution showing the likelihood of different outcomes for a statistic based on a random sample.