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

A long-term investment has a similar return to a short-term investment.
A long-term investment has a greater return because it has greater risk.
A long-term investment has a greater return because it has lower risk.
A long-term investment has a lower return because it has lower risk.

Respuesta :

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Answer:A long-term investment has a greater return because it has greater risk.

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Parrain

Compared to a short-term investment, A long-term investment has a greater return because it has greater risk.

Risk v. Return

  • Higher risk investment give higher returns.
  • This is because the investors need to be compensated for the higher amount of risk they are incurring.

Long term investments tend to have high risk because so many different things could affect them as they mature. More return is therefore associated with them.

In conclusion, option B is correct.

Find out more on risk v. return at https://brainly.com/question/11541998.

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