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NEW QUESTION: 1
Section A (1 Mark)
The "lockup" problem involved in rebalancing refers to the:
A. Problem that investors face in retirement accounts that cannot be liquidated prior to retirement.
B. Problem of fixed-income securities that have little liquidity and therefore, must be held till maturity.
C. Taxable accounts subject to capital gains taxes if investments are traded.
D. Trust accounts that are not managed by the investor and cannot be traded without incurring administrative costs.
Answer: C


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