As You Get Older, You Decide to Reduce the Risk

question 37

Multiple Choice

As you get older, you decide to reduce the risk level of your retirement portfolio because your portfolio is nearing your minimum acceptable level. As the portfolio does better, you reallocate funds into higher-risk categories. You are practicing a form of ________.

• A) manipulating tax shelters
• B) involuntary intergenerational transfers
• C) excessive savings
• D) dynamic hedging

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Definitions:

LEO

Stands for Low Earth Orbit, which is the region of space around Earth at altitudes between 160 to 2,000 kilometers, used by satellites for a variety of applications.

MEO

Medium Earth Orbit, referring to satellites that orbit the earth at altitudes between Low Earth Orbit (LEO) and Geostationary Orbit (GEO), commonly used for navigation and communication.

Low-Power Transmitters

Electronic devices designed to broadcast signals over a short distance with limited power output, often used in personal or localized broadcasting scenarios.

GEO

Stands for Geostationary Earth Orbit, a type of orbit 35,786 kilometers above the Earth's equator and following the direction of the Earth's rotation.