ECON 101

1. Why is knowledge of actual human behavior arguably more important for Personal Financial Planning (PFP) than for any other area of finance? A. Due to PFP's closeness to human actions. B. Due to PFP's emphasis on practicality. C. Due to the irrational nature of most personal finance decisions. D. Both a and b. E. Both b and c. 2. Which of the following is a component of behavioral financial planning operations? A. Estate planning. B. Traditional money planning and making more effici...

. Which of the following is not a step in the planning system for asset allocation? A. Consider personal factors. B. Identify and review investment alternatives. C. Employ portfolio management principles. D. All of the above are steps in the planning system. E. None of the above is a step in the planning system. 2. Why can investments be viewed as a delivery mechanism? A. Because they increase the household's risk level. B. Because they help create sufficient assets to fund our goals. ...