Which of the Following Statements About Investing Is True
–
Risk and Return
: Higher
potential returns
usually come with higher risk.
–
Diversification
: Spreading investments across different assets can help
reduce risk
.
–
Long-Term Focus
:
Long-term investing
often yields better returns than trying to time the market.
–
Market Volatility
: Markets can be
unpredictable
, but short-term fluctuations don’t always indicate long-term trends.
–
Compounding
: Reinvesting earnings can lead to
compounding growth
over time.
No Guarantees
: All investments carry some level of
risk
, and there are no guaranteed returns