QUESTION 63

1. Phil Green is fifty years old and expects to retire in ten years. In Phil's policy statement, his financial advisor divides his remaining life into two stages: an active retirement period and a less active one with an emphasis on estate planning. The stages are most likely to be included in the:

a. Return objective.

b. Time horizon constraint.

c. Unique circumstances or behavioral constraint.

d. Liquidity constraint.

QUESTION 64

1. Bill Folk is the chief operating officer at a global tech firm who is required by the terms of his employment contract to own a minimum of $2 million in his company's stock. Bill is compensated with shares of stock deposited into his company sponsored retirement plan. This constraint is most likely:

a. Tax.

b. Time.

c. Legal.

d. Behavioral.