Which of the Following Is Not True Regarding Life-Cycle Approach

question 14

Multiple Choice

Which of the following is not true regarding life-cycle approach?

• A)It is most appropriate for institutions..
• B)It automatically adjusts to a more conservative position as the investor nears retirement age.
• C)It is suited to 401(k)plans.
• D)It can be implemented using life-cycle (also known as target-date)funds.

---

Definitions:

Firms

Business organizations engaged in professional, commercial, or industrial activities, aiming to generate profits.

Average Product

The average amount produced by each unit of a variable factor of production.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, ceteris paribus.

Average Product

The output produced per unit of input used; calculated by dividing the total product by the quantity of inputs.