Which of the Following Is Not True Regarding Life-Cycle Approach

question 14

Multiple Choice

Which of the following is not true regarding life-cycle approach?

• A)It is most appropriate for institutions..
• B)It automatically adjusts to a more conservative position as the investor nears retirement age.
• C)It is suited to 401(k)plans.
• D)It can be implemented using life-cycle (also known as target-date)funds.

Understand physiological responses associated with sexual arousal and activity.

Grasp the psychological components of emotion and their interrelations.

Understand the role and effects of dietary behaviors and cognition on physical health.

Identify and understand various aspects of emotional prediction and social exclusion.

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Definitions:

Risk-Free Rate

The theoretical rate of return on investment with zero risk of financial loss, often represented by government bonds.

Expected Dividend

The dividend payment a shareholder anticipates receiving, based on the company's past dividend history or announcements.

Weighted Average Cost of Capital (WACC)

A calculation of a firm's cost of capital where each category of capital is proportionately weighted, used to assess the average rate a company is expected to pay to its security holders.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often estimated using the Capital Asset Pricing Model (CAPM).