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Which of the Following Statements Is (Are) True Regarding Time

question 14

Multiple Choice

Which of the following statements is (are) true regarding time diversification?
I. The standard deviation of the average annual rate of return over several years will be smaller than the 1-year standard deviation.
II. For a longer time horizon, uncertainty compounds over a greater number of years.
III. Time diversification does not reduce risk.


Definitions:

Assumptions

Beliefs or premises taken for granted without requiring conclusive evidence.

Negotiating Behavior

This encompasses the range of actions and tactics individuals or parties use during negotiations to secure desired outcomes.

Negotiator

A person who communicates with others to reach an agreement in their mutual interest.

Procedural Issues

Concerns or problems related to the methods or processes used in carrying out an activity or achieving a goal.

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