QuestionJuly 25, 2025

For an investor with little time or desire to follow the markets a life cycle fund would be an appropriate choice for their retirement savings. True False

For an investor with little time or desire to follow the markets a life cycle fund would be an appropriate choice for their retirement savings. True False
For an investor with little time or desire to follow the markets a life cycle fund would be an appropriate choice for their retirement savings.
True
False

Solution
3.9(337 votes)

Answer

True Explanation 1. Evaluate the characteristics of a life cycle fund Life cycle funds automatically adjust asset allocation based on the investor's age or target retirement date, requiring minimal active management. 2. Assess suitability for investors with limited time or interest These funds are designed for investors who prefer a hands-off approach, aligning well with those who have little time or desire to actively manage their investments.

Explanation

1. Evaluate the characteristics of a life cycle fund<br /> Life cycle funds automatically adjust asset allocation based on the investor's age or target retirement date, requiring minimal active management.<br />2. Assess suitability for investors with limited time or interest<br /> These funds are designed for investors who prefer a hands-off approach, aligning well with those who have little time or desire to actively manage their investments.
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