Asked by Jonathan Conkle on Jul 11, 2024
Verified
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
Dynamic Hedging
A strategy involving frequent, complex trades to protect against portfolio losses due to market volatility.
Minimum Acceptable Level
The lowest threshold of performance, return, or quality deemed acceptable under specific conditions or scenarios.
Retirement Portfolio
A collection of financial assets specifically designed and managed to support an individual's financial needs in retirement.
- Understand various retirement planning strategies and their implications.
Verified Answer
Learning Objectives
- Understand various retirement planning strategies and their implications.
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