1) Right after college graduation, you open a targeted retirement account, allocating 82% of the funds to domestic and international stocks and 18% to corporate bonds. You plan to shift these allocations to 50% stock and 50% bonds upon retirement. You are now ready for retirement with $5,200,000 in your fund. How much money should you allocate to stocks and bonds?

a) $4,264,000 to stocks and $936,000 to bonds

b) $2,600,000 to stocks and $2,600,000 to bonds

c) $936,000 to stocks and $4,264,000 to bonds

d) You cannot answer this question without knowing the current inflation rate.