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.

Identify the characteristics of material culture.

Understand the relationship between language, culture, and society.

Understand the distinctions and connections between spirituality and religion.

Comprehend the role of spirituality in human development and its impact on overcoming life challenges.

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Definitions:

Present Value

The present value of a future amount of money or series of cash flows at a given rate of return.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Risk Averse

A descriptor for individuals or entities that prefer to minimize exposure to risk and avoid uncertain outcomes.

Risk and Return

The principle that potential return on investment rises with an increase in risk. Higher risk is associated with the greater probability of higher return and vice versa.