The principle of compounding implies that:
A) we should diversify enough so that the returns on different stocks will be the same at some time in the future.
B) any difference in the rate of investment returns will stay constant over time.
C) a small difference in the rate of investment returns makes no difference over a long period.
D) a small difference in the rate of investment returns can have a large difference over a long period.
Correct Answer:
Verified
Q154: How long will it take an investment
Q155: According to the rule of 70, a
Q156: Which statement is TRUE?
A) In the long
Q157: According to the rule of 70, a
Q158: What rule of thumb generates the number
Q160: Approximately how many years will it take
Q161: The risk-return trade-off refers to the fact
Q162: What is the risk-return trade-off?
A) Assets with
Q163: Financial returns on houses are _ over
Q164: Figure: Risk
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents