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Explain a connection between long- and short-term investments and return.

Explain a connection between long- and short-term investments and return.

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Long-term investments are investments that pay back over a period of numerous years. While making long-term investments, you can choose to be more aggressive and may decide to invest in an aggressive mutual fund to get the maximum rate of return.

Short-term investments, as the name indicates are traded within the time-frame of three years or less. Investment channels that lend themselves to a shorter investment time period are mutual funds, stocks, and some bonds & bond mutual funds

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