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antoniya [11.8K]
3 years ago
11

Compared to a short-term investment, what is the general return of a long-term investment? A) A long-term investment has a simil

ar return to a short-term investment.
B) A long-term investment has a greater return because it has greater risk.
C) A long-term investment has a greater return because it has lower risk.
D) A long-term investment has a lower return because it has lower risk.

Business
1 answer:
slavikrds [6]3 years ago
8 0

Let understand that "short-term investment" are investments that can be easily converted to cash and has a maturity period of less than a year. Example of this investment are Money Market.

"Long term investment" are investment that runs over a long period of time and yield higher return than the short-term investment". Example of these investment are stocks, bonds, real estate

  • People invest in "Long term investment" because its offers more risk for higher rewards.

In conclusion, long-term investment has a greater return because it has greater risk.

Learn more about this here

<em>brainly.com/question/17681451</em>

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Answer:

See Explanation Below

Explanation:

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Answer:

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The opportunity formula comes handy in this case, which is given below:

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