Principle 8,Risk and Return go hand in hand,tells us that you ________ as the length of the investment horizon ________.
A)can afford to take on additional risk;increases
B)can afford to take on additional risk;decreases
C)cannot afford not to take on additional risk;shortens
D)cannot afford to take on additional risk;increases

Question

Quizplus · Accepted Answer

As the length of the investment horizon increases, the investor has more time to weather any short-term fluctuations in the market and is better able to recover from any potential losses. Therefore, the investor can afford to take on additional risk with the expectation of higher returns.

Principle 8,Risk and Return Go Hand in Hand,tells Us That