Pfp ch10 Study guides, Class notes & Summaries

1. Why is it so difficult to identify a group of assets or other techniques that can fully eliminate portfolio risk? A. They types of assets that can eliminate portfolio risk are only available to professional money managers. B. The lack of a full hedge for the lifetime work-related income streams we call human assets. C. The volatility of portfolio returns over time. D. All of the above. E. None of the above. 2. When a household revises its portfolio, it attempts to establish a risk/ret...

1. Why is it so difficult to identify a group of assets or other techniques that can fully eliminate portfolio risk? A. They types of assets that can eliminate portfolio risk are only available to professional money managers. B. The lack of a full hedge for the lifetime work-related income streams we call human assets. C. The volatility of portfolio returns over time. D. All of the above. E. None of the above. 2. When a household revises its portfolio, it attempts to establish a risk/ret...

1. Which of the following is the second step of the retirement planning process? A. Analyze retirement risks. B. Familiarize yourself with retirement issues. C. Develop goals. D. Become knowledgeable about retirement structures. E. None of the above. 2. The percentage of the elderly population is expected to: A. Rise from 15 percent in 2000 to 20 percent in 2030. B. Rise from 5 percent in 2000 to 25 percent in 2030. C. Fall from 20 percent in 2000 to 15 percent in 2030. D. Fall from 25...