Time is an important element in an investment policy because it A) limits the effects of choosing poor investments. B) has a direct bearing on what investments are appropriate for achieving a client's goal. C) increases the likelihood of outperforming the market. D) magnifies the effects of early losses.
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B) This is a more accurate statement. Time horizon is a crucial factor in determining the appropriate investments for a client's goals. For example, a long-term investment strategy may include more aggressive investments such as stocks, while a short-term strategy Show more…
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