Compared to a short-term investment, what is the general return of a long-term investment? A) A long-term investment has a similar return to a short-term investment.
B) A long-term investment has a greater return because it has greater risk.
C) A long-term investment has a greater return because it has lower risk.
D) A long-term investment has a lower return because it has lower risk.

Compared to a shortterm investment what is the general return of a longterm investment A A longterm investment has a similar return to a shortterm investment B class=

Respuesta :

Let understand that "short-term investment" are investments that can be easily converted to cash and has a maturity period of less than a year. Example of this investment are Money Market.

"Long term investment" are investment that runs over a long period of time and yield higher return than the short-term investment". Example of these investment are stocks, bonds, real estate

  • People invest in "Long term investment" because its offers more risk for higher rewards.

In conclusion, long-term investment has a greater return because it has greater risk.

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Answer:

Compared to short-term investment, what is the general return of long-term investment?

  1. Long-term investment has a similar return to short-term investment.
  2. Long-term investment has a greater return because it has greater risk.
  3. Long-term investment has a greater return because it has lower risk. <<<CORRECT
  4. Long-term investment has a lower return because it has lower risk.

Explanation:

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