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Which of the Following Statements Is True Regarding Time Diversification

question 81

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.


Definitions:

Reaction Sequence

A set of consecutive chemical reactions where the product of one reaction serves as the reactant for the next.

Reagents

Compounds or blends employed in chemical processes to identify, quantify, investigate, or generate different compounds.

Reaction

A process in which one or more substances are changed into one or more different substances through the breaking and formation of chemical bonds.

Major Organic Product

The primary product resulted from an organic reaction, typically the one formed in the greatest yield.

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