Final answer:
The correct answer is B.To reduce volatility as you approach retirement, you should allocate a substantial portion of your portfolio to bonds, which are more stable and provide a predictable income.
Step-by-step explanation:
As you near retirement, you should allocate a substantial portion of your portfolio to bonds to reduce volatility. Bonds are typically more stable than stocks, and they provide more predictable income .
streams, which are attractive qualities for those approaching retirement and wanting to protect their savings from significant short-term fluctuations.
Investing in bonds as you approach retirement age can enhance the certainty about retirement income and reduce the risk associated with the volatility of the stock market.