Recommendations & StrategiesCâu 55 / 110
An investor's asset allocation should shift toward more conservative holdings as which of the following changes?
a.Their risk tolerance increases sharply
b.They approach the time when they will need the funds
c.Interest rates fall to record lows
d.Their income rises substantially
Giải thích
As an investor nears the point of needing their funds, such as retirement, reducing exposure to volatile assets protects accumulated wealth from a poorly timed downturn. A shorter time horizon reduces the ability to recover from losses. This is the rationale behind glide-path strategies in target-date funds.
Luyện miễn phí toàn bộ 110 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Under current federal rules, long-term capital gains (on assets held more than one year) are generally taxed:
- Tax-loss harvesting is a strategy that involves which of the following?
- The wash-sale rule disallows a tax loss if the investor buys a substantially identical security within what period?
- The Capital Asset Pricing Model (CAPM) expresses the expected return of a security as a function of which of the following?
- Alpha in portfolio performance measurement represents which of the following?
- A client wants current income and capital preservation with low risk. Which allocation is most suitable?
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Đội Ngũ Biên Tập PrepPass · Đối chiếu với NASAA Series 65 Investment Adviser Law Exam · Quy trình kiểm tra