Bobby wants to take the guesswork out of figuring how his portfolio should be apportioned between stocks and bonds as he gets closer to retirement, so he buys a mutual fund that automatically rebalances the mix as he nears his calculated retirement date. This type of fund is known as a(n):
A) exchange-traded fund.
B) life cycle index.
C) portfolio apportionment index.
D) target date fund.
E) retirement parity fund.
Question 2
Judy has recently retired from her dental practice, and she is most interested in investments that will provide her income during her retirement. Which of the following would be the least appropriate investment for Judy to select?
A) Government bonds
B) Investment-grade corporate bonds
C) Preferred stock
D) Blue-chip stocks
E) Certificates of deposit
