The Principle of Compounding Implies That

Multiple Choice

The principle of compounding implies that:

A) we should diversify enough so that the returns on different stocks will be the same at some time in the future.
B) any difference in the rate of investment returns will stay constant over time.
C) a small difference in the rate of investment returns makes no difference over a long period.
D) a small difference in the rate of investment returns can have a large difference over a long period.