Question

Which of the following statements is true? A) To be more conservative in planning for an individual's retirement, decrease the individuals life expectancy. B) A sensitivity analysis helps the advisor determine the single most effective factor in a retirement plan. C) A Monte Carlo Analysis uses a random number generator to provide the advisor with an array of possible outcomes utilizing the same fact patter. D) The capital preservation model assumes that at retirement the client will have exactly the same account balance as he did at his ideal working age.

Answer 1

A) To be more conservative in planning for an individual's retirement, decrease the individuals life expectancy.==>TRUE

B) A sensitivity analysis helps the advisor determine the single most effective factor in a retirement plan. ==> FALSE

C) A Monte Carlo Analysis uses a random number generator to provide the advisor with an array of possible outcomes utilizing the same fact patter. ==>TRUE

D) The capital preservation model assumes that at retirement the client will have exactly the same account balance as he did at his ideal working age. ==> TRUE