Q1. A fixed planning horizon strategy is analogous to an:

A)   insured investment strategy.

B)   augmented asset allocation strategy.

C)   insurance product such as a life annuity.

Q2. Which of the following statements concerning a fixed planning horizon strategy is least accurate?

A)   The asset allocation will not be held constant through time.

B)   The strategy will ordinarily outperform asset allocation strategies that have greater risk.

C)   There is zero probability that funds will be insufficient to meet the target amount.

Q3. Factors that would cause an investor to favor an asset allocation strategy, relative to a fixed planning horizon strategy, include all of the following EXCEPT:

A)   maintaining the potential to achieve objectives greater than the minimum is important.

B)   the investment planning horizon is unlikely to change.

C)   attaining the minimum objective is desirable, but failure to do so would not be catastrophic.

答案和详解如下：

Q1. A fixed planning horizon strategy is analogous to an:

A)   insured investment strategy.

B)   augmented asset allocation strategy.

C)   insurance product such as a life annuity.

Correct answer is A)

A fixed planning horizon strategy is analogous to an insured investment strategy, because there is an attempt to insure that a minimum amount of assets are available at a fixed point in the future.

Q2. Which of the following statements concerning a fixed planning horizon strategy is least accurate?

A)   The asset allocation will not be held constant through time.

B)   The strategy will ordinarily outperform asset allocation strategies that have greater risk.

C)   There is zero probability that funds will be insufficient to meet the target amount.

Correct answer is B)

A fixed horizon strategy will ordinarily NOT outperform asset allocation strategies that have greater risk.

Q3. Factors that would cause an investor to favor an asset allocation strategy, relative to a fixed planning horizon strategy, include all of the following EXCEPT:

A)   maintaining the potential to achieve objectives greater than the minimum is important.

B)   the investment planning horizon is unlikely to change.

C)   attaining the minimum objective is desirable, but failure to do so would not be catastrophic.

Correct answer is B)

If the investment planning horizon is unlikely to change, that would favor the use of a fixed planning horizon strategy. All of the other factors would tend to favor the use of an asset allocation strategy.

Thank you!