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.

• A) I only
• B) II only
• C) II and III only
• D) I, II and III
• E) None of the statements are correct

---

Definitions:

Wheel of Social Media

A conceptual model that outlines the key components or phases involved in strategizing, implementing, and managing social media marketing efforts.

Engagement

The level of involvement, interaction, or emotional investment that an individual has with a brand, product, or service.

Experience Product

A product that offers consumers a unique and memorable experience, emphasizing the value gained from the usage or consumption over the physical product itself.

YouTube

A free video-sharing website that allows users to upload, view, and share videos, serving as a platform for individuals and companies to disseminate content.