Holding All Other Factors Constant,increasing the Frequency of the Compounding

question 54

True/False

Holding all other factors constant,increasing the frequency of the compounding period will increase the future value of an initial investment.

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Definitions:

Capital Gains Yield

reflects the price appreciation of a security or an investment, showing the percentage increase in the investment's value over a period.

Deviations

Instances of departing from an established course or accepted standard.

Average Return

The sum of returns accrued over a period divided by the number of periods to assess investment performance.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, indicating how much and how quickly the value of an investment, market, or market sector changes.