compared to a short - term investment, what is the general return of a long - term investment?\na long…

compared to a short - term investment, what is the general return of a long - term investment?\na long - term investment has a similar return to a short - term investment\na long - term investment has a greater return because it has greater risk\na long - term investment has a greater return because it has lower risk\na long - term investment has a lower return because it has lower risk

compared to a short - term investment, what is the general return of a long - term investment?\na long - term investment has a similar return to a short - term investment\na long - term investment has a greater return because it has greater risk\na long - term investment has a greater return because it has lower risk\na long - term investment has a lower return because it has lower risk

Answer

Brief Explanations:

In finance, the risk - return trade - off principle states that higher risk is generally associated with higher potential return. Long - term investments often carry more risk due to factors like market volatility over a longer time horizon, so they tend to have the potential for greater returns compared to short - term investments.

Answer:

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