What Differentiates the "New Mode" Approach from the "Usual" Mode

question 11

Multiple Choice

What differentiates the "new mode" approach from the "usual" mode of retirement?

• A) The individual takes the spouse's qualities and family obligations into account.
• B) Both partners in a couple pool their assets when they begin their financial planning.
• C) The husband makes decisions about his retirement and then informs the wife.
• D) Neither partner in a couple takes the other into account in retirement decisions.

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Definitions:

Total Risk

The entire range of uncertainties including market and specific risks that affect the value of an investment.

Unsystematic Risk

The risk associated with a particular company or industry, as opposed to the market as a whole; also known as specific or idiosyncratic risk.

Market Level

The current status or position of prices, stocks, or commodities within a particular market.

Systematic Risk

Market-wide or market segment-specific dangers that cannot be eliminated by diversifying one's investment portfolio.