An Example of a Lifecycle Fund Is a Fund That

question 64

Multiple Choice

An example of a lifecycle fund is a fund that

• A) Assists investors with planning for retirement by a specific date.
• B) Initially invests in conservative securities, then changes to invest in more risk-oriented securities as time goes by.
• C) Invests in shares of other mutual funds in order to increase diversification and asset allocation.
• D) Has principal protection as its main objective.
• E) None of these is an example of a lifecycle fund.

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Definitions:

Optical Storage

A method of storing data on discs, such as CDs and DVDs, that is read with a laser.

Bluetooth Technology

A type of wireless technology that uses radio waves to transmit data over short distances often used to connect peripherals such as printers and keyboards to computers or headsets to cell phones.

Earbuds

Listening devices that connect to computing devices so sound can be heard.

Wired

Refers to electronic devices or systems that are connected and communicate through physical cables.