Question

Which of the following statements is FALSE? A. Investors often make the mistake of putting all of their "eggs in one basket." B. Diversification in an investment portfolio is one way to lessen the risk factor. C. The amount of time a specific investment has to work is of little importance when choosing the investment alternative. D. Younger investors tend to invest a large percentage of their nest egg in growth-oriented investments.

Answer 1

Which of the following statements is FALSE? C. The amount of time a specific investment has to work is of little importance when choosing the investment alternative.

C is false because the amount of time the investment has to work is extremely important when choosing different alternatives. When deciding where to invest your money, it's necessary to study all of the options as far as interest returns, maturity date, how long your money needs to be in the investment without withdrawl penalities, etc. If your needs will not be fully met by the investment you are picking, you may want to look into picking a different investment opportunity.

Answer 2

Answer:

C. The amount of time a specific investment has to work is of little importance when choosing the investment alternative.

Explanation:

The amount of time that a specific investment as to work is very important when you are choosing the investment alternative, sometimes projects can take too much time, while your money is just "sitting" there and you can´t make new investments. Also short time, high reward investments tend to have a very large risk factor, as well as the long time high reward, usually the best investments or safer are the long term, low paying because those are more secure investments.