Target-date retirement funds are not
A) funds of funds diversified across stocks and bonds.
B) designed to change their asset allocation as time passes.
C) a simple, but useful, strategy.
D) designed to function much like hedge funds.

Question

Quizplus · Accepted Answer

Target-date retirement funds are designed to automatically adjust their asset allocation from more aggressive investments to more conservative ones as the target date (usually retirement) approaches. They are not designed to function like hedge funds, which employ different strategies aimed at achieving high returns.

Target-Date Retirement Funds Are Not