Target-date retirement fundsA) change their asset allocation as time passes.B) are a simple, but useful, strategy.C) function much like hedge funds.D) change their asset allocation as time passes and are a simple, but useful, strategy.E) All of the options are correct.

Question

Target-date retirement fundsA)  change their asset allocation as time passes.B)  are a simple, but useful, strategy.C)  function much like hedge funds.D)  change their asset allocation as time passes and are a simple, but useful, strategy.E)  All of the options are correct.

Chase Basham · Accepted Answer

Final Answer : D, Explanation :  Target-date retirement funds are designed to automatically adjust their asset allocation as the target date (usually the investor's expected retirement date) approaches, becoming more conservative over time. They are also considered a simple but useful strategy for retirement savings, as they provide a hands-off approach for investors who may not want to actively manage their investments. They do not function like hedge funds, which are investment vehicles that use complex strategies and often aim for absolute returns.

Target-date retirement funds

A) change their asset allocation as time passes.
B) are a simple, but useful, strategy.
C) function much like hedge funds.
D) change their asset allocation as time passes and are a simple, but useful, strategy.
E) All of the options are correct.

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