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.

• A) I only
• B) II only
• C) II and III only
• D) I, II, and III

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Definitions:

Anorexia Nervosa

A life-threatening eating disorder characterized by dramatic weight loss and a distorted body image.

Female Athlete Triad

A problem affecting female athletes, especially in college, involving (1) low energy, (2) menstrual problems, and (3) loss of bone density.

Acquired Drives

Motivational drives that are learned or developed through experiences, such as a drive for achievement or affiliation, rather than those innate or biological in nature.

Anorexia Nervosa

A psychological and potentially life-threatening eating disorder characterized by an extremely low body weight, a devastating fear of weight gain, and a distorted perception of body weight and shape.