57
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 57 • Personal Finance - EL3403

One common advantage of a long-term investment is

Answer
A
higher return.
B
no risk.
C
higher liquidity.
D
no liquidity.

Explanation

A common advantage of long-term investments is the potential for higher returns because investments have more time to grow and recover from short-term market changes. This is not guaranteed, and long-term investments still carry risk. They are generally less liquid than short-term investments, so choices B, C, and D do not describe the advantage.

AI-written and checked against the verified answer.

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