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1.
Long time horizons generally enable us to assume _______ short-term ones.
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More risk than. Time reduces risk.
2.
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.
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.
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.
5.
Putting off payment of your taxes until later is known as _______.
Choose wisely. There is only one correct answer.
Tax deferral. This is advantageous when it comes to retirement planning.