Target date funds A. invest in bonds with durations that match the target date. B. liquidate...
Target date funds
A.
invest in bonds with durations that match the target date.
B.
liquidate their assets and distribute the proceeds when the target date is reached.
C.
invest in more conservative assets as the target date approaches.
D.
guarantee a minimum net asset value once the target date is reached.
Homework Answers
The asset allocation of a target-date fund thus gradually grows more conservative as the target date nears and risk tolerance falls.
C.invest in more conservative assets as the target date approaches.
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