Which of the following best describes the changes in asset class composition that occur with increased age,according to the investor life cycle theory of Seigal (1991)?
A) more wealth allocated to equity
B) more wealth allocated to fixed interest
C) less wealth allocated to property
D) less wealth allocated to cash

Question

Quizplus · Accepted Answer

The investor life cycle of Seigal (1991)states that the composition of an investor's portfolio will tend towards lower-risk investments as an investor's age increases.Therefore investors will tend to increase holdings of the cash,fixed interest and property asset classes and decrease holdings of equity.

Which of the Following Best Describes the Changes in Asset