The Composition of an Asset Allocation Fund

question 78

Multiple Choice

The composition of an asset allocation fund

• A)includes nontraditional assets such as derivative securities and global real estate.
• B)is fixed and does not change with market conditions.
• C)is designed to automatically change as the investor ages.
• D)is adjusted by the fund's managers in response to expectations and economic conditions.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the average.

Standard Deviation

A statistical measure of the dispersion or spread in a set of data, indicating how much variation exists from the average.

Index Fund

A type of mutual fund or exchange-traded fund (ETF) designed to replicate the performance of a specific benchmark index.

PHStat

A software program that enhances Microsoft Excel with the capability to perform statistical analysis.