Purchasing a Life-Cycle Fund Is a "Set-It-And-Forget-It" Approach to Investing

question 142

True/False

Purchasing a life-cycle fund is a "set-it-and-forget-it" approach to investing for retirement.

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Definitions:

Nonsense Syllables

A string of letters that does not correspond to a word in any language, used in psychological experiments on memory and learning.

Proactive Interference

A phenomenon where old information stored in memory interferes with the ability to learn and remember new information.

Retroactive Interference

A phenomenon where new memories impair the retrieval of older memories.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often referred to as the "I-knew-it-all-along" phenomenon.