Which of the Following Statements Is True of Investing

question 153

Multiple Choice

Which of the following statements is true of investing?

• A) An early start to investing can lead to dramatically more money when it comes time to retire.
• B) Investing in one type of financial security is less risky than investing in a diversified financial portfolio.
• C) The later you begin investing, the more powerful the effect of compounding becomes.
• D) Older investors are less concerned about risk than younger investors.

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Definitions:

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud, focusing on unconscious motivations and early childhood experiences.

Repression Analysis

A psychological process analyzing how individuals unconsciously forget or block out memories, thoughts, or feelings.

Theories

Systematic sets of ideas intended to explain phenomena or provide a framework for understanding and predicting outcomes.

Logically Related Statements

Statements that are connected or coherent in a manner that follows logical principles, such as cause and effect or sequence.