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:

Filipino Men

Males of Filipino descent, identified by their cultural, geographical, or national ties to the Philippines.

Police Officers

Members of law enforcement charged with the prevention and detection of crime and the maintenance of public order.

White Men

Refers to males who are identified as white, often discussed in the context of social, economic, and political advantages related to race and gender.

Painful Event

An occurrence that causes significant emotional, physical, or psychological distress to an individual.