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1.
An investment's volatility over the long term generally _______ compared to its volatility over the short term.
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Decreases. Volatility generally decreases when comparing longer investment periods to shorter ones.
2.
Long time horizons generally enable us to assume _______ short-term ones.
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More risk than. Time reduces risk.
3.
If you still have a long time before you retire, you may want to consider _______.
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More aggressive long-term investments. The younger you are, the more risk you might be willing and able to assume with your investments.
4.
You will be penalized for withdrawing money from pension plans before age 73.
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False. You will be penalized if you withdraw your retirement money before age 59½.
5.
If you want the safety of low-volatility investments, you will have to accept ________ as well.
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Lower returns. As a rule, the lower the volatility of an investment, the lower the potential return.