The principle of compounding implies that:we should diversify enough so that the returns on different stocks will be the same at some time in the future.any difference in the rate of investment returns will stay constant over time.a small difference in the rate of investment returns makes no difference over a long period.a small difference in the rate of investment returns can have a large difference over a long period.

We should diversify enough so that the returns on different stocks will be the same at some time in…

Answered: The principle of compounding implies…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 45P: A project does not necessarily have a unique IRR. (Refer to the previous problem for more...

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