As You Lengthen the Time Horizon of Your Investment Period

Multiple Choice

As you lengthen the time horizon of your investment period and decide to invest for multiple years, you will find that:
I. The average risk per year may be smaller over longer investment horizons.
II. The overall risk of your investment will compound over time.
III. Your overall risk on the investment will fall.

A) I only
B) I and II only
C) III only
D) I, II, and III