"The lower the dispersion in returns, the greater the accumulated value of otherwise equal investments." This statement is
A) true
B) false
C) true for the short run, but not necessarily true for the long run
D) true for the long run, but not necessarily true for the short run

Question

Quizplus · Accepted Answer

Lower dispersion in returns implies less volatility, which generally leads to a more predictable and stable growth in investment value over time, resulting in a greater accumulated value.

"The Lower the Dispersion in Returns, the Greater the Accumulated