XXXII. Because of the volatility of the stock market, as the time approaches when one expects to draw on the investment funds,

a. the necessity of maximizing returns increases.

b. the ability to recover from a decline in the market increases.

c. the ability to recover from a decline in the market decreases.

d. more of your wealth should be shifted from bonds to stocks.

Housing should be thought of as

a. a risky investment because the transaction costs of buying and selling housing is low.

b. a consumption good.

c. an asset that should be purchased as soon as possible because housing prices are always increasing.

d. a long term investment.

The biggest risk for a student considering education after high school is

a. getting a C in calculus.

b. being stuck with an incompatible roommate.

c. being denied admission by their first choice of school.

d. getting a negative return on their educational investment.