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6. Kay plans to retire in two years and wishes to liquidate her account at that...

6. Kay plans to retire in two years and wishes to liquidate her account at that time. Kay has a _____ constraint.

  1. resource

  2. horizon

3. liquidity

  1. tax

  2. special circumstances

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Answer #1

6)

All types of constraints that are related to time are considered to be horizon constraints. These constraints vary with rate of return of various investment periods.

Hence, correct option is “Horizon”

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