Over Time, You Should Change the Composition of Your Investment

question 8

Multiple Choice

Over time, you should change the composition of your investment portfolio in response to change in your

• A) market expectations.
• B) investment goals.
• C) life circumstances.
• D) All of the above.

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Definitions:

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting how much of the asset's value has been used up over a period.

Estimated Useful Life

The expected period over which an asset is anticipated to be usable by a company.

Obsolescence

The process of an asset, product, or technology becoming outdated or no longer used, often due to advancements in technology or changes in consumer preferences.

Useful Life

The estimated duration that an asset is expected to be functional and economically feasible for use in operations, affecting depreciation calculations.