Question

What is TRUE about time as a factor in investing?

A.

The more time the investor has, the more risk they can take because there is time to weather the declines in a stock and wait for it to regain some of its value before selling.


B.

Time rarely plays a large role in investment decisions or outcomes, and typically waiting to make decisions lowers an investor’s overall risk.


C.

If you have 10 years or more to invest, opening a savings account can be a good option for high-risk, high-reward investing.


D.

If you have a shorter time period to invest because you are nearing retirement, a higher-risk investment is generally a better choice.


plz help :)

Answer 1

The more time the investor has, the more risk they can take because there is time to weather the declines in a stock and wait for it to regain some of its value before selling.

Step-by-step explanation:

I got it right on the test nun to worry about.

Answer 2

A. The more time the investor has, the more risk they can take because there is time to weather the declines in a stock and wait for it to regain some of its value before selling.

Step-by-step explanation:

This is basically the reason why younger investors can afford higher risks than older investors. If you are 60 years old, you will probably invest in very secure stocks or bonds. Instead, when you are 25, you can afford investing in risky stocks that have higher than average growth potential.