An Investor Has a Long Time Horizon and Desires to Earn

question 1

Multiple Choice

An investor has a long time horizon and desires to earn the market rate of return.However,the investor will need to withdraw funds each year from their investment portfolio.The biggest constraint a planner would face with this client is a ___________ constraint.

• A) tax
• B) risk tolerance
• C) liquidity
• D) social

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Definitions:

Self-Perception Errors

Mistakes made when individuals evaluate their own behavior and qualities, often leading to inaccuracies in self-assessment.

Overjustification Effect

A phenomenon where providing excessive external rewards for an already internally rewarding activity can lead to a reduction in intrinsic motivation.

Cognitive Process

The mental actions or operations involved in acquiring knowledge and understanding through thought, experience, and the senses.

Academic Successes

Achievements attained in educational settings, often measured by grades, awards, or degree completion.