Which of the Following Statements Is True Regarding Time Diversification

question 47

Multiple Choice

Which of the following statements is true regarding time diversification?
i. The standard deviation of the average annual rate of return over several years will be smaller than the one-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)None of these answers are correct
• C)II and III only
• D)I, II and III

Explore how trade policies (tariffs, quotas) influence consumer prices and market competition.

Understand the legal and operational definitions vital to corporate structures.

Comprehend the concept and significance of a corporation being a separate legal entity.

Identify the roles and responsibilities of shareholders and promoters in a corporation.

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Definitions:

Central Selling Feature

The key attribute or benefit of a product or service that is emphasized in marketing or sales efforts.

AIDA Approach

A marketing model that stands for Attention, Interest, Desire, and Action, used to guide the process of advertising or communication to engage consumers effectively.

Persuasive Message

Communication designed to influence the attitudes, beliefs, or behaviors of the recipient through logical or emotional appeals.

Unsolicited Sales Messages

Marketing or promotional communications that are not requested by the recipient, often viewed as spam.