A Retirement Savings Account That Is Designed to Automatically Rebalance

question 124

Multiple Choice

A retirement savings account that is designed to automatically rebalance the portfolio periodically to reflect the chosen allocation pattern is called a​

• A) ​limited managed account.
• B) ​balanced mutual fund.
• C) ​Monte Carlo account.
• D) ​buy-and-sell mutual fund.

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Definitions:

Interest Payments

Payments made to lenders as compensation for borrowing money, typically calculated as a percentage of the principal amount.

Interest Rates

The cost of borrowing money or the return on investment, typically expressed as a percentage.

Pure Rate

An interest rate that reflects only the payment for the time value of money, excluding other risk factors or costs.

Economic Models

simplified representations of complex economic processes or systems used to analyze behavior, make predictions, or provide insights into economic decision-making.