Posted by Bob on March 11, 19101 at 07:36:24:
The investor's investment horizon is the appropriate period for forecasting future cash flows from a candidate investment opportunity. The investor's time horizon is the point at which cash is expected to be withdrawn from the investment and used for consumption.
A 30 year-old investing for his retirement, a 40 year-old investing for her child's college education, and a 50 year-old investing for near-term consumption will have different investment time horizons.
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