Finance Brain
Courses
Home
Sign in
← Sequence of Returns Risk
1 / 3
Question
Why does sequence of returns risk not affect an investor who is still in the accumulation phase and making no withdrawals?
1
Because equities always recover within the accumulation phase, eliminating sequencing losses
2
Because accumulation-phase investors always have longer time horizons that offset bad sequences
3
Because accumulation-phase investors can choose to pause contributions during downturns
4
Because the geometric mean return is the same regardless of the order of annual returns when no withdrawals are made
Press 1–4 to pick an answer
Finance Brain