Which one of the following statements is true?
A)Investors should put all of their "eggs in one basket."
B)Individuals can ignore their tolerance for risk when selecting specific investments.
C)Diversification is one way to increase your risk.
D)The amount of time a specific investment has to work is an important factor when managing an investment.
E)Younger investors tend to invest a large percentage of their portfolio in income-producing securities.

Question

Quizplus · Accepted Answer

The amount of time a specific investment has to work is an important factor when managing an investment. This is true because the longer an investment has to work, the more potential there is for growth and the less risky it becomes. Time allows for the effects of compound interest to grow the investment.

Which One of the Following Statements Is True