Compared to a short-term investment, a long-term investment is generally considered to have similar returns. to be equally as risky. to offer lower returns. to have greater risk.

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Izabella Roman

24 September, 19:44

Compared to a short-term investment, a long-term investment is generally considered to have similar returns. to be equally as risky. to offer lower returns. to have greater risk.

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Travis Wu · Answer 1

As compared to a short-term investment, a long-term investment is generally considered to be equally as risky. Investment risk is taken in the context of the time horizon in which the investment will be held and then annualized to allow comparability amongst other investments with varying time frames. Over long periods of time, investment risk will trend towards it long term average which is generally equal across time periods.