Multiple choice

As per Boggle, asset allocation for older investors in accumulation phase should be

  1. 30% equity; 70% debt

  2. 40% equity; 60% debt

  3. 50% equity; 50% debt

  4. 70% equity; 30% debt
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The question references Boggle's asset allocation model. While the answer D (70% equity, 30% debt) contradicts conventional wisdom that older investors should hold less equity, this appears to be testing knowledge of a specific theoretical model rather than general principles. In standard practice, older investors typically reduce equity exposure.

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