Right After College Graduation,you Open a Targeted Retirement Account,allocating 90

question 20

Multiple Choice

Right after college graduation,you open a targeted retirement account,allocating 90% of the funds in domestic and international stocks and 10% in corporate bonds.You plan to shift these allocations to 50% stock and 50% bonds upon retirement.You are now ready for retirement with $8,000,000 in your fund.How much money should you allocate to stocks and bonds?

• A)$7,000,000 to stocks and $1,000,to bonds
• B)$4,000,000 to stocks and $4,000,000 to bonds
• C)$1,000,000 to stocks and $7,000,000 to bonds
• D)You cannot answer this question without knowing the current inflation rate.

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Definitions:

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution. It aims to provide an accurate description of the entire dataset.

Mean

In statistics, the average of a set of numbers, calculated by adding them all up and dividing by the count of those numbers.

Variation

Variation refers to the differences in characteristics or traits among individuals within a population, arising from genetic diversity or environmental factors.

Standard Deviation

A statistical measurement that quantifies the variation or dispersion of a set of data values from the mean.