What is the relation between investment horizon and returns?

A. Both are not related at all

B. Greater the investment horizon the larger the returns

C. Greater the investment horizon the smaller the returns

D. Greater the investment horizon more tax on the returns

Answer: Option B

Solution(By Examveda Team)

Greater the investment horizon the larger the returns is the relation between investment horizon and returns. The growth rate of the investments will depend on your risk profile, i.e., higher the risk you take in investments.