Q1. What are the main factors that underlie the determination of an appropriate investment policy when using a life-cycle approach, what is the main concern involved with determination of feasible retirement income, and what methods can be used to address this potential problem? A) The main factors that underlie investment policy under a life-cycle approach are the investor’s stage of life and level of wealth. The main issue to be addressed in determining the feasible level of retirement income is that of outliving one’s assets and income, and this can be addressed by spending only the real returns on assets held, incorporating a margin of safety in life expectancy calculations, or by using life annuities. B) The main factors that underlie investment policy under a life-cycle approach are the investor’s stage of life and level of wealth. The main issue to be addressed in determining the feasible level of retirement income is that of maintaining purchasing power, and this can be addressed by spending only the real returns on assets held, incorporating a margin of safety in life expectancy calculations, or by using life annuities. C) The main factors that underlie investment policy under a life-cycle approach are the investor’s stage of life and liability structure. The main issue to be addressed in determining the feasible level of retirement income is that of outliving one’s assets and income, and this can be addressed by spending only the real returns on assets held, incorporating a margin of safety in life expectancy calculations, or by using life annuities.
Q2. Which of the following statements concerning an investor’s age and level of wealth is most accurate? The investor’s level of risk tolerance is usually: A) decreasing with age, and decreasing with wealth. B) decreasing with age, but increasing with wealth. C) increasing with age, and increasing with wealth.
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发表于 2009-1-20 09:56
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