Guerdy has been eagerly planning her upcoming retirement. While she has accumulated a sizable portfolio, she anticipates living well into her 90’s based on her family history and current health. The market has been strong for the past several years and Guerdy fears that it will contract significantly just at the time she is ready to retire, causing her portfolio to be depleted more rapidly than anticipated. This an example of which type of risk?
Question 5Select one:
a.
Longevity risk
b.
Inflation risk
c.
Sequence-of-returns risk
d.
Asset allocation risk