The composition of an asset allocation fund
A)includes nontraditional assets such as derivative securities and global real estate.
B)is fixed and does not change with market conditions.
C)is designed to automatically change as the investor ages.
D)is adjusted by the fund's managers in response to expectations and economic conditions.

Question

Quizplus · Accepted Answer

Asset allocation funds are actively managed, and the fund's managers adjust the asset mix in response to market conditions and economic forecasts.

The Composition of an Asset Allocation Fund