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:

Glazed Tile Decorations

Decorative artwork made by applying a glass-like coating to ceramic tiles, which is then fired to create a smooth, often colorful surface.

Ishtar Gate

An ancient gate from Babylon, known for its decorative blue tiles and representations of dragons and bulls, symbolizing the city's power.

Rare Material

Substances that are uncommon or scarce in nature, often used in special applications due to their unique properties or rarity.

Marble Face

A sculptural or architectural element featuring a face, typically carved from marble, used in classical and neoclassical works.