The Principle of Compounding Implies That

question 2

Multiple Choice

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.

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Definitions:

Table

A structured arrangement of data organized into rows and columns within a document or database.

Design View

A mode in software applications that allows users to layout or modify elements visually, without interacting with code directly.

Limit To List

A feature in data validation that restricts input to a predefined set of values, ensuring data integrity.

Lookup Property

A feature in databases and software that allows fields in a table to match and retrieve corresponding information from another table or list.